Nigeria's Domestic Refining Capacity Faces Pressure from Inadequate Crude Supply
Nigeria's domestic refining capacity may face increasing pressure from inadequate crude supply unless stronger links are established between upstream production and local refineries, according to the Crude Oil Refinery-Owners Association of Nigeria (CORAN).
CORAN chairman Momoh Jimah Oyarekhua said the country must move beyond the traditional model of exporting crude oil while importing refined petroleum products by increasing the volume of crude processed locally and gradually developing surplus refining capacity for export.
The association is seeking stronger links between producers and refiners through the full institutionalisation of the Naira-for-Crude arrangement, with transparent eligibility for domestic refineries. CORAN also wants a domestic crude pricing framework that takes account of crude quality, delivery locations, and transportation costs.