The Crude Oil Refinery Owners Association of Nigeria (CORAN) held its inaugural summit, CORAN 2024, under the theme, “Making Nigeria a Net Exporter of Petroleum Products.” The summit underscored the critical role of Nigeria’s oil refining industry in driving economic growth, securing energy independence, and positioning the country as a key player in the global petroleum market.
At the event, Senator Dr. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), represented by Engr. Kamoru Busari, Director of Upstream at the Ministry of Petroleum Resources, emphasised that the summit’s theme reflects the nation’s urgent need to develop its Midstream and Downstream Oil and Gas sectors. He highlighted the importance of refining development as a multifaceted venture that can bolster economic expansion and ensure Nigeria’s energy security.
“Refinery development is not just about infrastructure; it’s about securing our future, ensuring economic growth, and positioning Nigeria as a global refining powerhouse,” said Lokpobiri. The statement set the tone for discussions on how Nigeria can shift from dependency on imported refined products to becoming a net exporter.
CORAN Chairman, Mr. Momoh Oyarekhua, in his opening remarks, reinforced the summit’s significance. He described it as a turning point for Nigeria’s energy sector, outlining the country’s ambitious goal to transition from an importer of refined petroleum to a dominant player in the global refining industry.
“This is a pivotal moment in our history. We aspire to shift from being an importer to becoming a refining powerhouse,” Oyarekhua declared. He traced the nation’s refining history, noting early successes and the establishment of key refineries. However, he acknowledged ongoing challenges, including governance inefficiencies, unreliable crude supply, and underutilised refining capacity, which have hindered the sector’s full potential.
Despite Nigeria’s installed refining capacity of 1.122 million barrels per day (BPD), including major investments like the Dangote Refinery, low utilisation remains a significant challenge. CORAN outlined a detailed plan to revitalise the sector, focusing on securing sustainable feedstock supply, enacting regulatory reforms, integrating the value chain, and attracting new investments in refineries.
The Independent Petroleum Producers Group (IPPG), represented by its Chairman, Mr. Abdulrazaq Isa, added that Nigeria’s refining sector has tremendous potential if properly harnessed. Isa stressed the need to unlock the country’s vast hydrocarbon resources to ensure self-sufficiency in domestic refinery feedstock.
“Nigeria should have no business importing crude oil to meet domestic refinery feedstock needs, given our abundant hydrocarbon resources. It is essential we unlock the much-needed incremental crude oil and gas production to secure our energy future,” Isa stated.
Dr. Layi Balogun, Vice Chairman of ND Western, in his keynote address at the summit’s dinner, reinforced the importance of balancing energy security with affordability and availability. Balogun warned that achieving only one of these goals without considering the others would undermine the overall success of Nigeria’s energy strategy.
“Nigeria needs energy security, but let us not forget that Nigerians also need energy availability and affordability. Achieving one without the others would mean we are walking on our heads,” Balogun said, emphasising the interconnectedness of these issues.
Looking to the future, CORAN aims to transform Nigeria into a net exporter of petroleum products, creating jobs and diversifying revenue streams in the process. The association pledged to meet again next year to assess progress and continue advancing the development of the country’s refining industry.
CORAN remains committed to advocating for the growth and modernisation of Nigeria’s refining sector. By fostering energy independence and economic prosperity, the association envisions a future where Nigeria not only meets its own petroleum needs but also becomes a major exporter on the global stage.
