Refinery Owners Urge FG To Prioritise Local Fuel Production

The Crude Oil Refinery Owners Association of Nigeria has called on the Federal Government to strengthen Nigeria’s domestic refining industry and progressively reduce reliance on imported petroleum products.

CORAN made the call in a position paper titled “Position Paper on the Urgent Need for Strategic Government Intervention to Strengthen Nigeria’s Domestic Refining Industry.”

The association said local refinery operators continued to face challenges including foreign exchange pressures, high borrowing costs, limited access to long-term financing, crude supply difficulties, inadequate infrastructure and high logistics costs.

CORAN expressed concern that Nigeria, despite being one of Africa’s largest crude oil producers, still struggled to supply domestic refineries with crude on commercially sustainable terms.

It said 61.9 million barrels were allocated to domestic refineries in the first quarter of 2026, while producers offered 68.7 million barrels, but only 28.5 million barrels were delivered.

The association acknowledged an improvement in the second quarter, when the Nigerian Upstream Petroleum Regulatory Commission reported that 53.7 million barrels of crude oil and condensate were supplied to local refineries.

CORAN also called for a domestic crude pricing framework that would take into account international benchmarks, crude quality, delivery points, logistics costs and other factors affecting the cost of supplying refineries.

The refinery owners expressed concern over the resurgence of petroleum product imports, citing data showing that domestic petrol supply fell from about 32.5 million litres daily in June to 25.8 million litres in July, while imports rose from 18.1 million to 19.7 million litres per day.

The association urged the government to ensure imports increasingly serve only to cover verified supply gaps, warning that continued imports could weaken investment in local refining and increase pressure on foreign exchange.

CORAN further called for improved access to long-term financing, stronger enforcement of domestic crude supply obligations, shared petroleum-product infrastructure and strategic reserves.

It also proposed regulatory and fiscal incentives for refinery expansion, particularly projects capable of increasing domestic supplies of petrol, diesel, aviation fuel and LPG.

The association urged the Federal Government to convene a Presidential Refining Industry Roundtable involving regulators, crude producers, refiners, financial institutions and relevant government agencies.

CORAN said the ultimate objective should be for Nigerian crude to increasingly supply Nigerian refineries, allowing the country to meet domestic demand and eventually become a major refining hub for Africa.