The Crude Oil Refinery Owners Association of Nigeria (CORAN) has called for the gradual elimination of petroleum-product imports as domestic refineries expand capacity, urging the Federal Government to reposition Nigeria as a major exporter of refined products.
CORAN Chairman, Momoh Jimah Oyarekhua, made the call on Monday at the third Nigeria Oil Refining Summit held at Eko Hotel, Lagos, where he unveiled the association’s 10-point agenda for strengthening domestic refining and developing an export-oriented industry.
Oyarekhua said Nigeria should move away from its longstanding dependence on imported petroleum products and focus on ensuring that existing and emerging refineries have adequate crude supply, financing, infrastructure and a competitive operating environment.
He said the objective should be to maximise installed refining capacity, meet domestic demand with locally refined products, develop surplus production and export refined petroleum products to regional and international markets.
‘For decades, Nigeria exported crude oil and imported refined products. Today, we in CORAN have changed that story by ensuring that our natural resources create jobs, industrial growth, energy security and prosperity for Nigerians,’ he said.
According to him, Nigeria has the crude resources, refining assets, domestic market and geographical advantage required to become a major refining hub for Africa, but achieving this would depend on resolving constraints around crude supply, infrastructure and financing.
Oyarekhua said domestic refineries must have reliable access to crude at commercially sustainable prices if they are to operate efficiently and compete in domestic and international markets.
‘Despite our abundant crude resources, some domestic refineries continue to face difficulties accessing crude oil on commercially viable terms,’ he said.
The CORAN chairman also called for stronger enforcement of the Domestic Crude Supply Obligation under Section 109 of the Petroleum Industry Act, while advocating commercially workable arrangements between crude producers and refiners.
The association’s 10-point agenda includes full institutionalisation of the naira-for-crude arrangement, development of a domestic crude pricing template and the use of crude swaps and proximity-based supply arrangements to reduce unnecessary transportation costs.
CORAN also proposed a refinery development financing framework providing long-term financing, guarantees and refinancing mechanisms for refinery expansion, upgrades and new projects.
It called for accelerated development of shared petroleum infrastructure, including pipelines, storage terminals, depots, jetties and rail evacuation systems, as well as strategic petroleum-product reserves to cushion supply disruptions during refinery maintenance and emergencies.
The association further urged the government to provide regulatory and fiscal incentives for refinery optimisation, particularly investments in facilities capable of increasing production of Premium Motor Spirit, aviation fuel, Liquefied Petroleum Gas and other high-value products.
Oyarekhua said Nigeria’s refining policy should ultimately be measured not only by crude production but by the proportion of crude converted into higher-value products locally.
He said increased domestic refining would help retain foreign exchange, create jobs, support manufacturing and petrochemical industries, and generate export earnings.
‘Nigeria should not continue exporting crude, exporting jobs and importing the same petroleum products at considerable economic cost,’ he said.
Oyarekhua also called for the development of a national refining and export roadmap with measurable targets for refinery capacity utilisation, expansion, domestic supply, elimination of petroleum-product imports and growth in refined-product exports.
He said the infrastructure supporting refineries must be developed alongside refining capacity.
‘Nigeria has already taken the difficult decision to reform the petroleum-products market. The next stage must be equally bold,’ he said.
‘The country must now support the refinery. Support the pipeline. Support the storage terminals.’
Oyarekhua urged stakeholders in the petroleum industry to translate the summit’s discussions into practical commitments capable of increasing refinery utilisation and expanding Nigeria’s refined-product exports.
He said the ultimate goal should be for Nigeria to meet its domestic petroleum-product requirements while becoming a dependable supplier to other African markets.
‘Refine more. Import none. Create more value. Create more jobs. Build a stronger Nigeria,’ he said.