‘Refineries will position Nigeria as global powerhouse’

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has said the development of local refining capacity would position Nigeria as a global powerhouse.

He spoke at the maiden summit of the Crude Oil Refinery Owners Association of Nigeria (CORAN). The theme of the summit was:“Making Nigeria a Net Exporter of Petroleum Products”.

The summit discussed the future of Nigeria’s oil refining industry and its potential to drive economic growth and energy security.

Lokpobiri, who was represented by the Director Upstream, Ministry of Petroleum Resources Engr. Kamoru Busari, said that the summit’s theme was timely and essential as it provided a crucial platform for stakeholders to explore Nigeria’s midstream and downstream oil and gas sectors, fostering self-sufficiency in refined petroleum products.

“Refinery development is not just about infrastructure; it is about energy security, economic growth, and positioning Nigeria as a global refining powerhouse,” Lokpobiri stated.

In his opening remarks, CORAN Chairman, Momoh Oyarekhua, emphasising the summit’s significance in reshaping Nigeria’s energy landscape said, “This is a pivotal moment in our history. We aspire to shift from being an importer to becoming a refining powerhouse”.

Oyarekhua outlined Nigeria’s refining journey, highlighting early successes with the establishment of key refineries.

However, challenges like governance inefficiencies and unreliable crude supply have hampered growth, leaving Nigeria dependent on imported refined products. Despite an installed refining capacity of 1.122 million barrels per day (BPD), including new investments like the Dangote Refinery, utilisation remains low.

CORAN proposed a comprehensive strategy to revitalise the sector, including securing sustainable feedstock supply, implementing regulatory reforms, integrating the value chain, and promoting new refinery investments.

The Independent Petroleum Producers Group (IPPG) through its Chairman, Abdulrazaq Isa, emphasised the importance of harnessing Nigeria’s abundant hydrocarbon resources, applauding government initiatives aimed at transforming the refining sector and boosting domestic production.

“Nigeria should have no business importing crude oil to meet domestic refinery feedstock given our vast hydrocarbon resources. It is crucial we unlock the much-needed incremental crude oil and gas production to secure our energy future”, Isa said.

The Vice Chairman of ND Western, Layi Balogun in his keynote address during the event’s dinner said that the CORAN Summit was crucial to Nigeria’s energy future.

“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.

Looking ahead, CORAN envisions transforming Nigeria into a net exporter of petroleum products, creating jobs, and diversifying revenue streams. The association pledged to reconvene next year to assess progress and further advance Nigeria’s refining industry.

He said the Crude Oil Refinery Owners Association of Nigeria was dedicated to advocating for and promoting the development of Nigeria’s refining industry. CORAN is committed to achieving energy independence and fostering economic growth through the expansion of Nigeria’s refining capacity, he added.