Nigeria’s modular refiners have criticised the Federal Government’s continued exclusion of indigenous players from the ongoing naira for crude deal, insisting that the policy currently benefits only the Dangote Petroleum Refinery.
CORAN Rejects Committee’s Inclusion Claim
The Crude Oil Refiners Association of Nigeria (CORAN) raised the alarm on Thursday, refuting claims by the Technical Sub Committee on Crude and Refined Product Sales in Naira that local refining operators participated in a recent stakeholder meeting.
CORAN’s Publicity Secretary, Eche Idoko, told our correspondent that none of the country’s modular or mid-sized refiners received invitations. He identified excluded players as OPAC, Edo Refinery, Walter Smith, Aradel, Duport, and several upcoming projects.
“We didn’t get any wind about that meeting,” Idoko said. “Only Dangote was invited. None of our members were present, and it’s disappointing that the report claimed otherwise.”
FG Committee Claims Broad Stakeholder Input
The sub committee, through a statement signed by Mohammed Manga, Director of Information at the Ministry of Finance, claimed the meeting included all relevant industry actors.
Those listed in the communique included:
- Presidential Adviser on Energy, Olu Verheijen
- Senior officials of the NNPC Limited
- Representatives from NMDPRA, NUPRC, and Nigerian Ports Authority
The committee reiterated its aim to boost the naira by promoting local sales of crude oil and petroleum products. It called the policy “a core component of President Bola Tinubu’s energy reform agenda.”
Modular Refiners Demand Equal Access
Idoko dismissed the government’s narrative, calling it misleading and exclusionary. He argued that smaller refiners are critical to domestic energy expansion, and continued neglect undermines the success of the naira for crude deal.
“The committee owes the President and Nigerians the duty to act fairly,” he said. “We appeal to the government to expand participation.”
He further urged the committee to include modular refineries in future sessions, noting that broader inclusion was promised when the programme launched in October 2024.
Background: A Policy Built on Inclusion
The Federal Government launched the naira for crude deal to improve domestic refining capacity, cut dollar outflows, and reduce petrol import costs.
Initially, the programme allowed only Dangote Refinery to receive crude in naira. It later paused in March after NNPC forward-sold its crude oil allocation until 2030. The FG reinstated the initiative in April, but concerns about exclusive participation persist.
Next Steps and Industry Expectations
CORAN has called for immediate redress. Idoko emphasised that multiple indigenous refineries some set to begin operations by December 2025 must not be excluded in future crude allocation cycles.
“We hope to see true fallout from the recent meeting,” he said. “This programme should fulfil its initial promise of inclusive growth for all Nigerian refiners.”
As of press time, the Ministry of Finance had not responded to follow-up inquiries, while Minister Wale Edun promised to issue an update on the deal “in due course.”
The growing tension between the government and modular refiners could weaken the full potential of the naira-for-crude deal. If the Federal Government hopes to achieve broader energy security, equity in crude allocation remains essential.