CORAN, Others canvass new roadmap to strenghten Nigeria’s refining environment

Report By Anthony Ebigie, Lagos, Nigeria

Nigeria must quickly address the challenges that have continued to derail development of it’s refining sector if the country is to remain Africa’s net exporter of refined petroleum products and maintain it’s enviable position as a key driver of the continent’s energy security pursuit.

This position was canvassed in Lagos on Monday, September 28th, at the opening of the 3rd Nigeria oil refining summit organised by the crude oil refinery owners association of Nigeria, CORAN.

In his welcome speech, Chairman of the association, Momoh Oyarekhua said the drive of CORAN is to change Nigeria’s story from a country that export crude oil and import refined petroleum products to that which ensures the country’s natural resources create jobs, enables industrial growth, guarantees energy security including prosperity for citizens. Oyarekhau said this year’s summit focuses on a critical question which borders on how the country could possibly ensure that refining creates real and lasting value for national economy. The answers he said lies in effective linking of Nigeria’s upstream resources with downstream demand.

“We acknowledge the remarkable progress made in domestic refining. Local refining is increasingly transforming Nigeria’s fuel supply landscape demonstrating what is possible when investment, policy, and industry align” Oyarekhua said.

The Chairman of CORAN also noted that despite significant progress made in domestic refining, several challenges continue to create major stumbling blocks for refiners.”Despite our abundant crude resources, some domestic refineries continue to face difficulties accessing crude oil on commercially viable terms. At the same time, fuel imports persist while local refining capacity remains underutilised” he further stated.

In addressing these challenges, the association through it’s Chairman called for the full institutionalisation of naira-for-crude, with a further call for transparent eligibility and access for qualifying domestic refineries, including modular refineries.

The association also canvassed a domestic crude pricing template that recognises crude quality, delivery point, including strengthened enforcement of the domestic crude supply obligation under section 109 of the petroleum industry act while it also advocated a workable commercial arrangement between producers and refiners among other recommendations.

The CORAN Chairman who advised against policies that encourages continuos export of Nigeria’s crude said the nation’s crude must increasingly power the country’s refineries, supply the domestic market and ultimately make Nigeria a refining hub for Africa.

On his part, the chairman of the independent petroleum producers group, IPPG, Adegbite Falade, in his keynote address applauded the efforts of critical stakeholders who over the years have worked to make Nigeria a net exporter of refined petroleum products ending decades of import dependence, the achievement he said were made possible through coherent, consistent, and reform-driven policies.
“The removal of petrol subsidy, the movement towards a market-based foreign exchange regime, the naira-for-crude initiative and the broader implementation of the PIA have fundamentally changed the operating environment” Falade stated.

He also noted that the theme for this year’s summit, “Refining for value:Linking upstream supply to downstream demand” does not only resonates deeply with Nigeria’s collective aspirations as a nation, but also demonstrates the determination of the country to harness the nation’s abundant hydrocarbon resources in the overall interest of citizens.

Governor of Lagos state, Babajide Sanwo-Olu who was represented by the state commissioner for energy and mineral resources, Biodun Ogunleye, called on all stakeholders to work with government at all levels to maximise the benefits of Nigeria’s mineral resources in advancing economic growth for the country, declaring that ongoing reforms in the oil and gas sector have started yielding results.

The CORAN summit which brought critical stakeholders from across the upstream and downstream petroleum industry to discuss the next roadmap for the nation’s refining space will come to a close on tuesday, September 29th.