The Crude Oil Refinery Owners Association of Nigeria (CORAN) has warned that fuel importers in Nigeria may soon be pushed out of business if they fail to adapt to the growing trend of local crude oil refining.
This comes as the Federal Government reinstated the naira-for-crude oil deal, despite opposition from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
Speaking in an exclusive interview, CORAN’s Publicity Secretary, Eche Idoko, debunked claims by DAPPMAN that selling crude oil to local refineries in naira could hurt the Nigerian economy. He argued that depot owners, who rely heavily on fuel importation, are resisting the change to protect their business interests.
Idoko likened the situation to individuals who store water in drums but resist the installation of pipes because it threatens their income. “Those who run tank farms and import substandard fuel don’t want Nigeria’s refineries and pipelines to work. They fear becoming irrelevant when full-scale local refining begins,” he stated.
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He further revealed that CORAN has encouraged depot owners to re-strategize their fuel business models and embrace the evolving landscape of the petroleum industry in Nigeria. However, many fuel marketers continue to insist on importation, even as refining in Nigeria becomes increasingly viable.
“With Nigeria on track to becoming a refining hub, fuel importers who refuse to adapt will eventually go out of business. Refining in Nigeria is no longer a dream—it’s a reality,” Idoko stressed.
He noted that before the naira-for-crude initiative, the price of petrol in Nigeria was approaching N700 per litre. With the implementation of the policy, led by the Dangote refinery, petrol prices dropped significantly, from N1,100 to as low as N860 per litre.
Despite this relief for Nigerian consumers, many fuel importers in Nigeria have expressed frustration, claiming they’re forced to sell below cost due to Dangote’s fuel price slashes. Reports show importers suffered an estimated N76.5 billion loss in March alone—an average of N2.5 billion daily.
DAPPMAN had urged President Bola Tinubu to cancel the naira-for-crude arrangement, stating it gave the Dangote refinery an unfair market advantage and risked destabilizing Nigeria’s forex market. “Crude oil trade is globally conducted in US dollars. Deviating from this could isolate Nigeria from international investors,” said DAPPMAN Executive Secretary, Olufemi Adewole.
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Still, the Federal Government reaffirmed its commitment to the naira-for-crude policy, citing its positive impact on petrol prices in Nigeria and its potential to promote local fuel production over importation.
As the shift to local refining continues, CORAN maintains that those clinging to fuel importation must adapt or face extinction in the new era of Nigeria’s oil and gas industry.
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