The Crude Oil Refiners Association of Nigeria has called on the Federal Government to channel increased oil revenues into the expansion of Nigeria’s domestic refining capacity, describing local refining as a strategic priority for energy security.
In a statement issued by its spokesperson, Eche Idoko, the association said recent developments in the global oil market have produced mixed outcomes for Nigeria, with higher crude prices boosting government revenues while simultaneously driving up the cost of refined petroleum products.
According to the group, the surge in global oil prices linked to tensions in the Middle East has raised the pump prices of petrol, diesel, and aviation fuel, but has also improved national earnings from crude exports.
The association noted that the situation highlights the growing importance of strengthening domestic refining capacity, stressing that local processing of crude is now essential rather than optional.
CORAN stated that existing refining operations within the country have already begun to deliver economic benefits by reducing reliance on imports and conserving foreign exchange.
It cited the role of the Dangote Petroleum Refinery, alongside modular refineries, in retaining value within the domestic economy and reducing exposure to external supply shocks.
The group urged the government to act decisively by reinvesting oil windfall revenues into the sector. It proposed the creation of a dedicated domestic refinery development fund to support new projects, expand existing facilities, and improve storage, logistics, and distribution infrastructure.
According to CORAN, such a fund would help attract investment and reduce risks associated with refining operations in Nigeria.
The association also highlighted the contribution of indigenous upstream companies currently supplying crude to local refineries, noting that operators such as EOP Energy Resources Ltd, Pillar Oil Limited, Inejeshia Nigeria Limited, and Millennium Oil & Gas Company are playing a role in sustaining refining activities.
It stressed the need for policies that recognise and support these suppliers through targeted incentives, including access to rigs and technical services, low interest financing through the Bank of Industry, and performance based incentives tied to volumes supplied to domestic refineries.
CORAN further called for priority access to evacuation systems and logistics infrastructure to ensure efficient movement of crude and refined products across the value chain.
On crude supply, the association emphasised the need to enforce domestic supply obligations while maintaining transparent pricing, fair commercial terms, and regulatory clarity to ensure alignment among stakeholders.
The group also advocated for measures to protect local refining capacity, including prioritising the consumption of locally refined products, reducing dependence on imports, and implementing strategic trade protections.
It maintained that Nigeria is at a critical stage in its energy development and must consolidate recent gains by strengthening domestic refining, supporting local suppliers, and ensuring consistent crude supply.
According to the association, a well supported refining sector would help stabilise fuel prices, conserve foreign exchange, and support long term economic growth.