“Stop Exporting Jobs and Importing Fuel” — Refinery Owners Urge FG to Curb Imports and Protect Local Operators

ABUJA, Nigeria — The Crude Oil Refinery Owners Association of Nigeria (CORAN) has called on the Federal Government to urgently intervene in the downstream petroleum sector by curbing petroleum product imports and implementing policies that prioritize domestic refining capacity.

In a detailed position paper titled “Position Paper on the Urgent Need for Strategic Government Intervention to Strengthen Nigeria’s Domestic Refining Industry,” released on September 3, 2026, the association warned that allowing fuel imports to compete unchecked against local refineries threatens industrial growth, drains foreign exchange, and exports local jobs.

Rising Imports Threaten Local Investment

CORAN highlighted concerning data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), showing that domestic Premium Motor Spirit (PMS) supply dropped from approximately 32.5 million liters per day in June 2026 to 25.8 million liters per day in July 2026.

During the same period, imported petrol rose from roughly 18.1 million liters per day to 19.7 million liters per day.

“A continuous import regime existing alongside substantial domestic refining investment exports Nigerian jobs and refining margins, places additional demand on foreign exchange, weakens investment incentives for existing and prospective refineries, and exposes Nigeria to international freight disruptions.” — CORAN Position Paper

The association argued that while government intervention should facilitate a transition away from consumption subsidies, it must actively shift toward enabling local production infrastructure—including pipelines, storage terminals, and modular to large-scale refineries.

Core Challenges Facing Nigerian Refiners

Operational Challenge	Impact on Local Operators
Crude Feedstock Access	Difficulty securing Nigerian crude oil on commercially sustainable and workable terms despite being a major global producer.
Foreign Exchange & Financing	High borrowing costs, lack of long-tenor industrial financing, and persistent FX exposure for operational equipment.
Infrastructure & Logistics	High evacuation costs, inadequate pipeline networks, and logistical bottlenecks near producing fields.
Import Competition	Resurgence of fuel imports competing directly with domestic refining output instead of merely filling supply gaps.