UGO AMADI
Drops 10-Point Demand: Naira-for-Crude For All, End Needless Fuel Imports, Crude Swaps For Local Refiners
Nigeria must move from exporting crude and exporting jobs to refining its own crude for its own prosperity, the Chairman of the Crude Oil Refinery Owners Association of Nigeria, CORAN, Mr. Momoh Oyarekhua, has declared.
Speaking at the 3rd Nigeria Oil Refining Summit in Lagos on Monday, Oyarekhua said the country has reached a defining moment.
“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,” he said.
He noted that discussions have evolved from making Nigeria a net exporter of products to strengthening Africa’s energy security, but warned that major challenges remain.
“Despite our abundant crude resources, some domestic refineries continue to face difficulties accessing crude oil on commercially viable terms. At the same time, fuel imports persist while local refining capacity remains underutilised.
“”Refining for value means more than producing fuel. It means retaining foreign exchange, creating jobs, developing local expertise, supporting petrochemicals and manufacturing.
“To fix the gap between upstream supply and downstream demand, CORAN is proposing a 10-point agenda for government and regulators:1. Full institutionalisation of Naira-for-Crude, with transparent eligibility for all qualifying refineries including modular plants.2. A domestic crude pricing template that recognises crude quality, delivery point, avoided international logistics costs and actual evacuation expenses.3. Strengthened enforcement of Domestic Crude Supply Obligation under Section 109 of the PIA while preserving workable commercial deals.4. Crude swaps and proximity-based supply — allowing producers close to local refineries to supply them directly instead of trucking crude to distant export terminals.5. Progressive reduction of product imports, restricting imports only to objectively determined shortfalls and strategic stock needs.6. A Refinery Development Financing Framework with long-tenor financing, guarantees and refinancing for new builds and expansions.7. Shared product infrastructure — pipelines, depots, storage terminals, jetties and rail as common-carrier facilities.8. Strategic petroleum-product reserves to cushion shutdowns, maintenance and global disruptions.9. Incentives for refinery expansion, especially conversion units to boost PMS, aviation fuel, LPG output.10. A clear national refining roadmap with targets for capacity, market share, imports and exports.
“Nigeria has already taken the difficult decision to reform the petroleum-products market. The next stage must be equally bold,” he said. “Support the refinery. Support the pipeline. Support the storage terminals.
“”Nigeria should not continue exporting crude, exporting jobs and importing the same petroleum products at considerable economic cost. Our crude must increasingly power our refineries. Our refineries must increasingly supply our market. And Nigeria must ultimately become a refining hub for Africa.
“He called for partnership among producers, regulators, refiners, marketers, financiers and host communities.
“History rarely rewards those who simply identify problems. It remembers those who solve them,” he charged, urging delegates to leave with “a clear resolve to do one thing that moves Nigerian crude closer to Nigerian refineries, and Nigerian refineries closer to the needs of Nigerians.
“”Because every barrel refined in Nigeria means more jobs for our people, more opportunities for our businesses, more value retained in our economy, and greater energy security for our future.””And so, let our shared commitment be simple and clear: Refine more. Import non. Create more value. Create more jobs. Build a stronger Nigeria.”
