Ayomide Bello
Local refiners were on Tuesday reassured of the Federal Government’s unflinching commitment to sustaining the Naira-for-crude oil sale agreement
This is just as the government also declared that it has increased crude oil supplies to local refiners to 289,000 barrels per day
This was part of the government’s broader policy to reduce the cost of fuel production and strengthen the domestic refining sector, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said
The minister disclosed this in Lagos at the 2025 Crude Oil Refinery Owners’ Association of Nigeria (CORAN) Summit, themed:”Refining: Key to Energy Security in Africa.”
He explained that the policy remains a deliberate strategy to shield indigenous refiners from exchange rate volatility while supporting their growth and competitiveness.
“The Federal Government remains committed to sustaining the Naira-for-crude sale arrangement as it mitigates exposure to fluctuating foreign exchange rates and reinforces our drive for indigenous refining,” he said.
He told participants, especially the refinery owners, that the government has continued to facilitate access to crude oil through the effective implementation of the Domestic Crude Oil Supply Obligation (DCSO), stressing that no nation can achieve true energy independence without refining its own crude.
According to him, every barrel of crude produced in Nigeria must contribute to meeting both the domestic and international obligations.
On regional integration, Senator Lokpobiri announced that the Federal Government has launched the West African Fuel Reference Market initiative.
The move, he explained, aims to position Nigeria as a regional refining and petroleum products supply hub for the West African subregion.
“With increased local refining capacity, Nigeria will not only meet domestic demand but also serve as a dependable supplier of refined products to neighbouring countries thereby reducing the region’s reliance on distant refineries and costly maritime imports,” the minister said.
Chairman of CORAN, Momoh Jimah Oyarekhua, emphasised that building modern, efficient refineries is not just about energy, but about sovereignty, stability, and sustainable growth.
He said that Nigeria is uniquely positioned to become Africa’s refining hub, given its vast crude oil reserves, growing private investment in refineries and strategic geographic location.
With both modular and large-scale refineries coming onstream, he assured that Nigeria would meet domestic demand also also serve regional markets under the AfCFTA.
To achieve this, he advocated consistent policy support, reliable crude supply, and competitive operating conditions.
“CORAN’s role is to align industry stakeholders and government toward this shared vision. By scaling capacity, driving efficiency, and fostering regional partnerships, Nigeria can realistically lead Africa’s refining transformation and enhance continental energy security,” he said.
He itemised some of the key challenges to include access to affordable financing for refinery projects; regulatory clarity and consistency that investors can trust; and infrastructure bottlenecks from power to pipelines.
Others are the need for all stakeholders to see tangible benefits, so that refining becomes a shared victory, not a source of conflict and resistance, and a reliable supply of crude feedstock to domestic refineries.
“Because without a guaranteed flow of crude, even the best-designed refineries will sit idle. Energy security begins not just at the refinery gate, but at the wellhead. If we secure the feedstock, we secure the fuel, the jobs, and the prosperity that follow,” he said.
Agency Chief Executive, Nigerian Mainstream and Downstream Petroleum Regulatory Authority, Egnr Farouk Ahmed, said that under the Petroleum industry Act (PIA) 2021 and through the visionary leadership of President Bola Ahmed Tinubu, the agency
has created the most transparent and predictable regulatory framework in the history.
“We have developed and gazetted 18 key regulations governing every phase of refinery development, from establishment to operations.
These were not crafted in isolation, but co-created with industry stakeholders to ensure that they are practical, bankable and investor-friendly.
“This is what we mean by regulatory clarity – clarity of rules, fairness in enforcement and confidence in outcomes.
At NMDPRA, we are not just regulating, we are facilitating industrial growth.
Engr Farouk was represented by one of the senior officers of the agency at the forum.
He said the agency is working across agencies and value chains to ensure assured product supply to all licenced refineries through structured nominations and supply mechanisms; seamless evacuation and logistics for refined products to reach markets efficiently; transparent market practises that guarantee fair competition; and narrow denominator crude sales to shield refiners from excess shocks.
He said the agency also ensured accelerated approvals and permits guided by clear service level standards; technical and commercial support through every stage of project development, among others.
