CORAN Nigeria: Advocates End To Petroleum Imports, Boosts Refining

• The Crude Oil Refinery-Owners Association of Nigeria (CORAN) has urged the Federal Government to end petroleum product imports.
• CORAN Chairman Momoh Oyarekhua presented a 10-point agenda at the 3rd Nigeria Oil Refining Summit in Lagos.
• The association advocates for maximizing domestic refining capacity to position Nigeria as a major refined product exporter in Africa.
• Key proposals include reliable crude access for domestic refineries, infrastructure investment, and institutionalizing the Naira-for-Crude initiative.
• Increased domestic refining is expected to create jobs, retain foreign exchange, and support local petrochemical and manufacturing industries.

The Crude Oil Refinery-Owners Association of Nigeria (CORAN) has called for a definitive end to the importation of refined petroleum products, advocating for a strategic pivot towards maximizing the nation's domestic refining capacity.

The Crude Oil Refinery-Owners Association of Nigeria (CORAN) has called for a definitive end to the importation of refined petroleum products, advocating for a strategic pivot towards maximizing the nation's domestic refining capacity. The association’s ultimate goal is to position Nigeria as a significant exporter of refined products across the African continent.

Momoh Oyarekhua, who chairs CORAN, articulated this stance while presenting the association's comprehensive 10-point agenda during the 3rd Nigeria Oil Refining Summit, which convened on Monday at the Eko Hotel in Lagos. This agenda outlines a clear pathway for Nigeria to transform its petroleum sector, moving away from its historical reliance on imported refined goods.

Oyarekhua emphasized that reforms within the Nigeria petroleum sector must prioritize optimizing existing refining infrastructure, enhancing overall operational capabilities, and fostering an export-oriented refining sector. Historically, Nigeria has operated under a model where it exported crude oil while simultaneously importing refined petroleum products. However, CORAN asserts that its efforts are reshaping this narrative, ensuring that Nigeria's abundant natural resources now contribute to job creation, industrial expansion, energy security, and broader national prosperity.

He articulated a clear progression: Nigeria's crude oil must increasingly fuel its own refineries, these refineries must then adequately supply the domestic market, and ultimately, the nation should emerge as a prominent refining hub for the entire African continent. This vision represents the desired outcome of comprehensive petroleum-sector reform, aiming to reverse decades of dependency on foreign refined products.

Central to CORAN's agenda is the insistence that for domestic refineries to operate at peak efficiency, they require consistent and reliable access to crude oil. Oyarekhua further advocated for substantial investments in critical infrastructure, specifically pipelines and storage facilities. He highlighted that despite Nigeria's significant crude oil reserves, some local refining operations continue to encounter challenges in securing crude oil under commercially viable conditions. Oyarekhua underscored the imperative for national support across the refining value chain, encompassing the refineries themselves, associated pipelines, and storage terminals.

The association's 10-point plan also includes the full institutionalization of the Naira-for-Crude initiative Nigeria, alongside the development of a domestic crude pricing template designed to accurately reflect crude quality, specific delivery points, and associated domestic evacuation costs. A key proposal is the complete elimination of petroleum-product imports once Nigeria's domestic refining capacity is sufficient to satisfy national demand and produce surpluses for export, effectively implementing a Nigeria fuel import ban proposal. Additionally, CORAN calls for the establishment of long-term financing and refinancing mechanisms specifically for refinery expansion and upgrades, as well as the accelerated development of essential infrastructure, including pipelines, storage terminals, depots, jetties, and rail evacuation systems.

Oyarekhua highlighted that an expansion in Nigeria domestic refining capacity would yield multiple benefits, including significant job creation, the retention of crucial foreign exchange, and robust support for both the petrochemical and manufacturing sectors. These outcomes are vital for sustainable economic growth and diversification.

Defining 'refining for value,' Oyarekhua explained that it extends beyond mere fuel production to encompass the retention of foreign exchange, the generation of employment opportunities, the cultivation of local expertise, the bolstering of petrochemical and manufacturing industries, and ultimately, the capture of greater economic value within Nigeria's borders. This holistic approach aims to maximize the socio-economic returns from the nation's natural resources.

Lawyers and compliance officers in Nigeria's energy sector should closely monitor proposed policy shifts regarding domestic crude allocation, pricing mechanisms, and potential import restrictions on refined petroleum products. These changes could significantly impact supply chain contracts, investment strategies, and regulatory compliance for refining and distribution companies.

Source: Original reporting via Punch Newspapers.