Cut petroleum product imports, CORAN urges govt

The Crude Oil Refinery Owners Association of Nigeria (CORAN) has urged the Federal Government to strengthen the domestic refining industry and decrease the nation's reliance on imported petroleum products. In a position paper, CORAN cited the United States' recent intervention in the American refining sector, highlighting Nigeria's need for similar government intervention.

Factors hindering Nigeria's refining industry include foreign exchange pressures, high borrowing costs, limited access to long-term financing, crude supply issues, inadequate infrastructure, and high logistics costs. The association emphasized that Nigeria should pursue correct pricing for crude delivered to domestic refineries, as merely allocating crude does not guarantee completion of transactions.

CORAN recommended a Domestic Refinery Crude Pricing Framework that takes into account internationally recognized crude benchmarks, quality differences, the actual point of delivery, and avoided international freight and insurance costs. The association also expressed concern over the resurgence of petroleum-product imports, urging the government to use imports only to address supply gaps.

CORAN urged the government to prioritize domestic production that meets equivalent specifications and commercial requirements, while making refineries a priority in the Nigerian market due to their potential for economic value retention, employment generation, and reduced foreign exchange dependency.