By Olakunle Oke
The Crude Oil Refiners Association of Nigeria (CORAN) has issued an urgent appeal to the Federal Government and stakeholders to prioritize a consistent crude oil supply to local refineries.
The association stressed that a steady feedstock is essential to sustain the growth of the refining sector and realize the full benefits of Nigeria’s recent petroleum sector reforms.
Speaking on a panel session during the African Energy Security Summit, CORAN Chairman, Mr. Momoh Oyarekhua, identified access to crude as the single biggest challenge facing local refiners.
“You may have the best refinery, but without crude, it is useless,” he stated, emphasizing that crude availability is the fundamental prerequisite for a functional refining sector, which in turn drives job creation, energy security, and national economic development.
Mr. Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association (ARDA), reinforced the continental perspective, lamenting that Africa continues to lose value by exporting crude only to import refined products at higher costs.
He called for stronger integration across the upstream, midstream, and downstream segments to build a sustainable value chain and ensure energy self-sufficiency.
Commenting on the Petroleum Industry Act (PIA), Mr. Oyarekhua acknowledged the legislation’s commendable provisions for the Domestic Crude Supply Obligation (DCSO). However, he argued that the inclusion of the “willing buyer, willing seller” clause has critically slowed progress.
He described the clause as a contradiction that allows producers to effectively withhold supply despite their legal obligation to support local refineries.
“You cannot impose an obligation and at the same time create an escape clause,” he argued, calling for a review of the PIA’s implementation to better balance the interests of upstream producers with the operational needs of refiners.
Engr. Boma Atiyegoba, Assistant Director at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), noted that refining remains a relatively new and often misunderstood industry in Nigeria.
He urged the government and regulators to create an enabling environment that recognizes refiners as private investors who require fair policies and operational clarity driven by “business realities.”
Furthermore, Engr. (Dr.) Lukeman Ayorinde Cardoso, Director/Regional Coordinator for the Southwest at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), proposed that future summits include key players like the Nigerian Ports Authority (NPA) and coastal terminal operators.
He stressed that addressing issues such as port charges, transportation costs, and infrastructure bottlenecks is crucial to reducing the final product prices and ensuring consumers benefit fully from domestic refining.
He suggested that government intervention in cost-bearing infrastructure, such as port fees, could significantly lower distribution costs.
The panelists concluded by stressing the importance of regional cooperation, urging African nations to harmonize refinery operations and fuel specifications to create a unified refining network across the continent, from Angola to Nigeria to Ghana.