The Crude Oil Refinery-Owners Association of Nigeria has called for an end to unnecessary petroleum-product imports, urging the Federal Government to maximise domestic refining capacity and position Nigeria as a major exporter of refined products in Africa.
The 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, Lagos, on Monday.
Oyarekhua said petroleum-sector reforms should focus on optimising existing refineries, improving infrastructure and creating an export-oriented 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 said domestic refineries must have reliable access to crude oil to operate efficiently.
He also called for greater investment in pipelines and storage infrastructure.
“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.
He said increased domestic refining would create jobs, retain foreign exchange and support 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 agenda, the association called for the full institutionalisation of the Naira-for-Crude initiative and a domestic crude pricing template that reflects crude quality, delivery points and domestic evacuation costs.
It also called for the elimination of petroleum-product imports as domestic refining capacity becomes sufficient to meet national demand and generate surpluses for export.
It proposed long-term financing and refinancing mechanisms for refinery expansion and upgrades, as well as accelerated development of pipelines, storage terminals, depots, jetties and rail evacuation systems.
