The Crude Oil Refineries Association of Nigeria (CORAN) has issued a stark warning against the country's persistent dependence on imported petroleum products. The association revealed that Nigeria's expenditure on petrol imports skyrocketed to approximately N15.4 trillion in 2024, a figure more than double the N7.5 trillion recorded in the previous year.
Local Investment Versus Import Dependency
In a position paper released on Tuesday, 7th January 2026, CORAN highlighted the significant contrast between the commitments of local refinery operators and importers. The association stated that local companies, encompassing large-scale, mid-scale, and modular refineries, have shown "true faith" in Nigeria's downstream sector. They have done this by constructing permanent, fixed industrial assets within the country—investments that are not easily movable or sellable without incurring massive financial losses.
CORAN emphasised that refining is a highly capital-intensive and risky segment of the oil and gas value chain. Investors must navigate numerous challenges, including volatile crude supply, foreign exchange fluctuations, inconsistent government policies, power shortages, logistics issues, and daily operational hazards. "A refinery is not a trading strategy; it is an industrial declaration of confidence in Nigeria’s future," the association asserted.
The Cost of Reliance on Imports
The association criticised the historical model that favoured imports, which it said prioritised access to ports, special foreign exchange windows, and lenient import regulations over long-term energy security and industrial growth. CORAN pointed out that even after the removal of the petrol subsidy, the nation's reliance on foreign fuel has not abated.
Citing data from the National Bureau of Statistics, CORAN noted that over 20 billion litres of Premium Motor Spirit (PMS) were imported in 2023. The colossal N15.4 trillion spent in 2024 represents a massive outflow of foreign exchange that could have been retained within the Nigerian economy. These funds, the association argued, could have bolstered domestic refining, logistics, storage infrastructure, petrochemical industries, and created sustainable jobs.
CORAN also took aim at the use of profits accumulated by importers, alleging that such capital was often channelled into real estate, financial portfolios, or acquisitions in the upstream sector—like marginal fields—where the crude is typically exported rather than processed locally. This approach, according to CORAN, reflects a preference for short-term financial returns over long-term industrial development and national capacity building.
A Call for Policy Intervention
The refinery body has called on the Federal Government to implement decisive measures to correct the imbalance. Key recommendations include:
- Guaranteeing transparent and reliable crude oil allocations to domestic refineries.
- Ensuring alignment between foreign exchange and pricing mechanisms to create a level playing field.
- Restricting import licenses strictly to situations where domestic production cannot meet national demand.
CORAN stressed that such policies are urgently needed to ensure local refiners, who bear substantial industrial risk, are not structurally disadvantaged compared to importers, whose operations involve minimal fixed investment in Nigeria's industrial future. The N15.4 trillion import bill underscores the critical need to shift priority towards investments that build enduring local capacity.
