Local refinery operators under the Crude Oil Refinery Owners Association of Nigeria (CORAN) have warned that irregular crude deliveries meant for domestic processing are leaving several Nigerian refineries operating far below capacity.
The concern was raised during a visit by CORAN leaders to the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, where refiners said the gap between crude volumes approved on paper and what is eventually delivered is hurting production, financing, and energy security.
Speaking during the meeting, CORAN’s Board of Trustees Chairman, Emmanuel Ihenacho, said figures show that while hundreds of thousands of barrels are earmarked daily for domestic refineries, only a small portion consistently reaches operators. He noted that losses linked to operational challenges, cargo re-trading, and flexible supply arrangements are depriving the country of value that could be retained locally.
According to him, domestic refiners play a direct role in converting crude allocations into petrol, diesel, and aviation fuel used across the country, but inconsistent feedstock supply continues to weaken that value chain.
He explained that several modular and mid-sized refineries remain technically ready to run but cannot sustain operations because crude supply is unstable. This, he added, has implications for workforce stability, financing agreements, and host communities that depend on refinery activities.
Ihenacho also drew attention to pricing concerns, saying current crude pricing structures tied to international benchmarks do not reflect the realities of local refining. He said operators are not asking for subsidies but for a clear and predictable pricing model that can support long-term planning and attract investment.
Beyond pricing, he cited infrastructure bottlenecks between production points and refinery delivery locations. Some refiners, he said, have invested in jetties, marine transport, and pipelines to ease evacuation challenges, but broader coordination is required to reduce system-wide inefficiencies.
The CORAN chairman further observed that recent changes in Nigeria’s upstream landscape, including divestments by international oil firms, have altered the profile of crude producers. He urged regulators to ensure that domestic supply obligations remain a priority as indigenous operators take on a larger share of production.
Among the requests presented to the regulator were stricter enforcement of domestic crude supply rules, a standard template for crude purchase agreements, improved transparency in reporting allocations versus deliveries, fair domestic pricing, and collaboration to address infrastructure gaps. He also suggested reserving specific crude volumes for smaller refineries and linking field development approvals and export permits to compliance with local supply requirements.
In response, Eyesan encouraged refiners to explore participation in oil block bid rounds as a way to secure more reliable and affordable crude sources for their plants.
CORAN spokesperson Eche Idoko later said the regulator believes that greater involvement of refiners in upstream asset ownership could create more stable commercial arrangements for crude supply and strengthen local participation across the petroleum value chain.
Eyesan was also quoted as advising refinery operators to pursue long-term supply contracts with producers to guarantee predictable deliveries and pricing stability. She acknowledged, however, that pipeline limitations, storage shortfalls, marine logistics issues, and evacuation bottlenecks remain major obstacles to seamless crude movement to local refineries.
Both parties described the engagement as part of ongoing efforts to ensure that Nigeria’s crude resources translate into greater domestic refining, job creation, and economic value retention.
