CORAN Seeks Presidential Intervention, Pushes Naira-for-Crude as Industrial Policy

The Crude Oil Refinery Owners Association of Nigeria (CORAN) has called for urgent presidential intervention to address mounting structural constraints facing domestic refiners. It warned that Nigeria risks continuing to export its crude oil, jobs and refining margins while remaining dependent on imported petroleum products.

In a position paper released at the weekend, CORAN demanded the immediate convening of a Presidential Refining Industry Roundtable. It wants refiners, regulators, crude producers, the Nigerian National Petroleum Company Limited (NNPC), financial institutions, infrastructure investors and relevant government ministries to come together and develop a clear roadmap for the sector.

Domestic Crude Supply Must Be Commercially Viable

CORAN said the proposed intervention should focus on securing commercially viable crude supplies for local refineries, institutionalising the Naira-for-Crude initiative, establishing a domestic crude pricing framework, unlocking long-term financing and curbing unnecessary dependence on imported petroleum products.

The association argued that despite Nigeria being one of Africa’s largest crude producers, local refiners still face difficulties accessing feedstock under commercially workable arrangements. It acknowledged improved crude supplies to local refineries in the second quarter of 2026, but insisted that physical allocation alone would not guarantee survival and growth.

According to CORAN, the real issue is whether crude can be supplied under arrangements that reflect transportation costs, crude quality, delivery points, evacuation expenses, financing requirements and refinery proximity to producing assets. Nigerian refiners often face extra costs from trucking, barging and pipeline transportation, which must be considered in setting sustainable crude prices.

CORAN therefore proposed a domestic crude pricing mechanism that factors in crude quality, delivery location, avoided international freight and insurance costs, domestic evacuation expenses and reasonable commercial margins for producers.

Naira-for-Crude Must Be Institutionalised

The refinery owners renewed their push for full institutionalisation of the Naira-for-Crude initiative. They described the policy as critical to reducing the foreign exchange exposure of domestic refiners whose products are largely sold in naira.

“Naira-for-Crude should become an industrialisation policy rather than an episodic intervention,” CORAN stated.

The association argued that forcing refineries to source crude in foreign currency while selling most products in naira creates an unnecessary commercial mismatch that could undermine investment. It called for a transparent and predictable framework through which qualified domestic refineries, including modular and emerging operators, could access Nigerian crude and settle eligible transactions in naira.

CORAN also raised concerns about the continued influx of imported petroleum products. While imports may be needed to bridge genuine supply gaps and maintain availability, they should serve as a temporary balancing mechanism, not the foundation of Nigeria’s downstream petroleum market. Continued import dependence would increase foreign exchange demand, expose Nigeria to international freight costs and geopolitical disruptions, and transfer jobs and refining margins abroad.

Financing, Infrastructure and Strategic Status

High borrowing costs and limited long-term financing remain major obstacles to new refineries and expansion of existing facilities. CORAN proposed a Refinery Development and Expansion Financing Framework involving development finance institutions, commercial banks, pension funds, infrastructure funds and private investors. This framework should provide longer-tenor funding, credit guarantees, refinancing windows and construction-risk support.

The association also called for more investment in pipelines, storage terminals, depots, rail-linked transportation and marine evacuation facilities. It said Nigeria’s overwhelming reliance on road transport raises costs for refiners and consumers, damages roads and increases accident risks.

CORAN urged the federal government to treat refining as strategic industrial infrastructure, not just another downstream petroleum business. It said a stronger domestic refining industry could create jobs across engineering, fabrication, transportation, petrochemicals, lubricants, plastics and construction while helping Nigeria conserve foreign exchange.

The group pointed to recent developments in the United States, where President Donald Trump met refinery and fuel industry executives to discuss expanding refining capacity and lowering fuel prices. CORAN argued that government engagement with refiners is not corporate entitlement but recognition of refining’s strategic importance to energy security and economic stability.

The proposed Presidential Refining Industry Roundtable should produce measurable timelines for full institutionalisation of Naira-for-Crude, strengthening the Domestic Crude Supply Obligation, developing a domestic crude pricing template and creating sustainable financing mechanisms, CORAN said.

For the naira, the message is clear: institutionalising naira-based crude sales would reduce forex pressure from fuel imports and local refining. Nigerian businesses and consumers stand to gain if refining becomes a strategic industry rather than a recurring import bill.