The Crude Oil Refinery Owners Association of Nigeria (CORAN) has called on the Federal Government to urgently strengthen the domestic refining industry and reduce dependence on imported petroleum products.
In a position paper titled “Position Paper on the Urgent Need for Strategic Government Intervention to Strengthen Nigeria’s Domestic Refining Industry,” released on Thursday, the association cited recent U.S. intervention in its refining sector as a lesson for Nigeria.
CORAN argued that local operators face even greater challenges, including foreign-exchange pressures, high borrowing costs, limited long-tenor financing, crude supply difficulties, inadequate infrastructure and high logistics costs.
“It is sound industrial policy. It is energy-security policy. And ultimately, it is economic policy,” the association stated.
CORAN expressed concern that Nigeria, one of Africa’s largest crude producers, still struggles to supply domestic refineries on commercially viable terms. In the first quarter of 2026, 61.9 million barrels were allocated and 68.7 million offered, yet only 28.5 million barrels were delivered.
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The Nigerian Upstream Petroleum Regulatory Commission linked the shortfall partly to pricing gaps. Performance improved in the second quarter, with 53.7 million barrels supplied, representing 97.4 per cent of the Domestic Crude Supply Obligation.
The association stressed that allocations alone are insufficient and called for a Domestic Refinery Crude Pricing Framework that reflects benchmarks, quality, delivery points, logistics and fair producer margins.
“The objective is not subsidised crude. The objective is correctly priced crude,” it said.
CORAN also warned against rising product imports, citing NMDPRA data showing domestic PMS supply dropping from 32.5 million litres per day in June to 25.8 million in July while imports rose. It urged that imports serve only residual gaps and that domestic output receive market priority.
Highlighting financing constraints, CORAN proposed a Presidential Refining Industry Roundtable and ten priority actions, including institutionalising naira-for-crude, enforcing Section 109 of the Petroleum Industry Act, developing a pricing template, reducing imports, creating financing frameworks and building strategic reserves.
“Nigeria should not continue exporting crude, exporting jobs and importing the same petroleum products,” the association concluded by calling on the country to take all necessary steps to become Africa’s refining hub.
