The Crude Oil Refinery Owners Association of Nigeria (CORAN) has urged the Federal Government to urgently strengthen domestic refining by ensuring local refineries have reliable access to crude at commercially sustainable prices and by progressively reducing dependence on imported petroleum products.
In a position paper issued on Thursday, CORAN warned that allowing petrol imports to continue alongside growing domestic refining capacity could weaken refinery investments, increase foreign exchange exposure and undermine Nigeria’s ambition to become a regional refining hub. The association said government policy should shift from supporting consumption through imports to creating conditions that make domestic production commercially viable.
CORAN identified the gap between crude allocations and actual deliveries as a major constraint. It said 61.9 million barrels were allocated to domestic refineries in the first quarter of 2026, while producers offered 68.7 million barrels, but only 28.5 million barrels were actually delivered. According to the association, NUPRC identified pricing differences between crude producers and domestic refiners as a major reason the crude offered did not translate into completed transactions.
“A refinery does not consume an allocation on paper. It consumes crude delivered under commercially sustainable terms,” CORAN stated, calling for crude supply arrangements to take account of pricing, transportation, evacuation infrastructure, crude quality, payment terms and proximity to producing assets. It acknowledged an improvement in the second quarter, when NUPRC reported that 53.7 million barrels of crude oil and condensate were supplied to local refineries, representing 97.4 per cent performance of the Domestic Crude Supply Obligation.
The association also raised concern over renewed petrol imports, citing NMDPRA data showing that domestic PMS supply declined from about 32.5 million litres per day in June to 25.8 million litres per day in July, while imports increased from 18.1 million litres to 19.7 million litres per day. CORAN said imports should increasingly be limited to independently verified supply gaps where domestic production is insufficient.
It warned that a sustained import regime could weaken incentives for existing and prospective refineries, increase demand for foreign exchange, expose the market to international freight and geopolitical disruptions and shift refining margins and associated economic activity outside Nigeria. CORAN therefore called for import licences to be calibrated against verified domestic production and supply gaps, with locally refined products given priority where they meet required specifications and commercial requirements.
On crude pricing, CORAN proposed a Domestic Refinery Crude Pricing Framework based on international benchmarks such as Brent, WTI and Platts, while accounting for crude quality, actual delivery points, avoided international freight and insurance costs, domestic evacuation and logistics expenses, proximity to producing fields and reasonable commercial margins. “The objective is not subsidised crude. The objective is correctly priced crude,” the association stated.
CORAN further called for stronger enforcement of the Domestic Crude Supply Obligation under the Petroleum Industry Act, wider use of crude swaps, long-term refinery financing, shared pipeline and storage infrastructure, strategic petroleum-product reserves and incentives for refinery expansion. It also proposed an urgent Presidential Refining Industry Roundtable involving refiners, NUPRC, NMDPRA, NNPC Limited, crude producers, financiers and relevant government agencies, stressing that Nigeria’s refining ambition requires an integrated ecosystem rather than reliance on a single refinery.