The Crude Oil Refinery-owners Association of Nigeria (CORAN) has stated that Nigeria is gradually establishing itself as a refining hub in West Africa. However, the association has raised concerns over persistent crude supply challenges faced by local refineries.
CORAN made this remark while welcoming the licensing of a new private refinery in Delta State by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Earlier this week, NMDPRA announced via its X page that it had granted MRO Energy Limited a license to construct a 10,000 barrels-per-day refinery in the Ughelli area of Delta State. The authority’s Chief Executive, Farouk Ahmed, presented the License to Establish the refinery at Imode, Delta State.
Speaking with Nairametrics, CORAN Publicity Secretary, Eche Idoko, expressed optimism about the development, noting that Nigeria is emerging as a refining hub due to projects such as the Dangote Refinery and other private and state-owned facilities. He emphasized that the increasing number of refineries could significantly influence the global pricing and supply of petroleum products.
“Just like Rotterdam in the United States is a global reference point for refining, Nigeria can achieve the same status,” Idoko said. He also highlighted the potential for Nigeria to transition from being an import-dependent nation to becoming an export hub for refined petroleum products.
Idoko commended NMDPRA for reducing licensing fees last year, a move aimed at encouraging the establishment of local refineries. He noted that this gesture, alongside other federal government initiatives, is positively impacting the downstream sector.
Despite these strides, Idoko criticized the government for failing to make crude oil easily accessible to local refiners. He revealed that the Nigeria National Petroleum Company Limited (NNPC) has not been able to meet the demands of local refineries. He also disclosed that President Bola Tinubu’s Naira-for-crude initiative, designed to support local refiners, has stopped.
“None of the modular refineries are receiving crude supplies from the government, and the Naira-for-crude initiative is no longer operational,” Idoko said.
While Nigeria’s refining potential is promising, CORAN stressed the urgent need for the government to address crude supply challenges to fully realize the country’s potential as a refining hub and export leader in Africa.