The Crude Oil Refinery-Owners Association of Nigeria has called on the Federal Government to reduce and eventually end unnecessary petroleum product imports by maximising the country’s domestic refining capacity.
The association also urged the government to position Nigeria as a major exporter of refined petroleum products across Africa.
Chairman of CORAN, Momoh Oyarekhua, made the call while presenting the association’s 10-point agenda at the 3rd Nigeria Oil Refining Summit held at the Eko Hotel in Lagos on Monday.
Oyarekhua said petroleum-sector reforms should prioritise the optimisation of existing refineries, improved infrastructure and the development of an export-focused refining industry.
He said, “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.
“Our crude must increasingly power our refineries. Our refineries must supply our market. And Nigeria must ultimately become a refining hub for Africa. That should be the destination of petroleum-sector reform.”
Oyarekhua stressed that domestic refineries need reliable access to crude oil to operate efficiently and called for increased investment in pipelines and storage infrastructure.
He said, “Despite our abundant crude resources, some domestic refineries continue to face difficulties accessing crude oil on commercially viable terms.
“The country must now support the refinery. Support the pipeline. Support the storage terminals,” Oyarekhua said.
According to him, expanding domestic refining would create employment, conserve foreign exchange and strengthen Nigeria’s petrochemical and manufacturing industries.
“Refining for value means more than producing fuel. It means retaining foreign exchange, creating jobs, developing local expertise, supporting petrochemicals and manufacturing, and capturing greater economic value within Nigeria,” he said.
As part of its 10-point agenda, CORAN called for the full institutionalisation of the Naira-for-Crude initiative and the adoption of a domestic crude pricing template that takes into account crude quality, delivery locations and domestic evacuation costs.
The association also called for petroleum product imports to be phased out once domestic refining capacity becomes sufficient to meet national demand and generate surplus products for export.
CORAN proposed long-term financing and refinancing options to support refinery expansion and upgrades.
It also called for faster development of pipelines, storage terminals, depots, jetties and rail systems to improve the movement of crude oil and refined products across the country.
