Nigerian refinery owners urge government to curb fuel imports and support local plants

Nigeria’s refinery owners want the Federal Government to treat domestic refining as an industrial, energy-security and economic priority, arguing that crude allocations mean little when refineries cannot receive oil on workable commercial terms.

The Crude Oil Refinery Owners Association of Nigeria 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.” It cited recent intervention by U.S. President Donald Trump in the American refining sector as a lesson for Nigeria.

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It is sound industrial policy. It is energy-security policy. And ultimately, it is economic policy.

CORAN said Nigerian operators faced foreign-exchange pressures, expensive borrowing, limited access to long-term financing, crude supply constraints, inadequate infrastructure and high logistics costs. The association also questioned why Nigeria, despite being one of Africa’s largest crude producers, continued to struggle to supply domestic refineries.

According to figures cited by CORAN, producers offered 68.7 million barrels for domestic refineries in the first quarter of 2026, while 61.9 million barrels were allocated. Only 28.5 million barrels were delivered. The Nigerian Upstream Petroleum Regulatory Commission identified pricing gaps between producers and refiners as a major reason that offers did not become completed transactions.

CORAN acknowledged an improvement in the second quarter, when NUPRC reported that 53.7 million barrels of crude oil and condensate reached local refineries. That represented reported performance of 97.4 percent under the Domestic Crude Supply Obligation. “CORAN acknowledges and commends this improvement,” the association stated.

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A refinery does not consume an allocation on paper. It consumes crude delivered under commercially sustainable terms.

But the group stressed that allocation figures alone could not keep refineries operating. “A refinery does not consume an allocation on paper. It consumes crude delivered under commercially sustainable terms,” CORAN stated. It called for supply arrangements to consider price, transport, evacuation infrastructure, crude quality, financing, payment terms and proximity to producing assets.

The association also proposed a Domestic Refinery Crude Pricing Framework. It said Brent, WTI and Platts could remain useful market references, but should not apply mechanically when refiners must also pay separate evacuation and logistics costs.

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CORAN acknowledges and commends this improvement.