The Crude Oil Refinery Owners Association of Nigeria (CORAN) has urged the Federal Government to strengthen Nigeria’s domestic refining industry, ensure sustainable crude supply and progressively reduce dependence on imported petroleum products.
In a position paper released on Thursday, CORAN said local refiners were battling foreign-exchange pressures, high borrowing costs, crude supply constraints, inadequate infrastructure and rising logistics costs.
The association said Nigeria’s status as one of Africa’s largest crude producers had yet to translate into reliable crude supply for domestic refineries.
According to CORAN, 61.9 million barrels were allocated to local refineries in the first quarter of 2026, while producers offered 68.7 million barrels, but only 28.5 million barrels were delivered, largely due to pricing gaps.
CORAN, however, welcomed 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, representing 97.4 per cent performance under the Domestic Crude Supply Obligation.
But the association stressed that allocations alone were insufficient.
“A refinery does not consume an allocation on paper. It consumes crude delivered under commercially sustainable terms,” CORAN said.
It called for a domestic crude pricing framework that considers international benchmarks, crude quality, delivery points, logistics costs and the proximity of refineries to producing fields.
“The objective is not subsidised crude. The objective is correctly priced crude,” it stated.
Nigeria’s Domestic Refining Industry Faces Import Pressure
CORAN also warned that rising fuel imports could weaken investment in Nigeria’s domestic refining industry.
It cited NMDPRA data showing that domestic PMS supply fell from about 32.5 million litres per day in June 2026 to 25.8 million litres in July, while imports rose from 18.1 million to 19.7 million litres daily.
The association urged the government to calibrate import licences against verified domestic supply gaps and give priority to locally refined products that meet required standards.
CORAN also called for affordable, long-term financing, describing refineries as critical industrial infrastructure capable of creating jobs, conserving foreign exchange and supporting other sectors.
The association proposed an urgent Presidential Refining Industry Roundtable involving regulators, NNPC Limited, crude producers, financial institutions and refinery operators.
Its recommendations include full implementation of naira-for-crude, stronger enforcement of the Domestic Crude Supply Obligation, a domestic crude pricing framework, refinery financing, shared infrastructure, strategic product reserves and incentives for refinery expansion.
CORAN said government policy should shift from subsidising consumption to supporting production.
“Nigeria should not continue exporting crude, exporting jobs and importing the same petroleum products at considerable economic cost,” the association stated.
It added that Nigeria must build a strong network of large, medium-sized and modular refineries to meet domestic demand and ultimately become a petroleum-products refining hub for Africa.
