The Crude Oil Refinery Owners Association of Nigeria has asked the Federal Government to take urgent steps to address the challenges limiting the growth of domestic refineries, particularly access to affordable crude oil.

In a position paper issued over the weekend, the association called for a Presidential Refining Industry Roundtable involving refinery operators, regulators, crude producers, the Nigerian National Petroleum Company Limited, financial institutions and relevant government agencies.

CORAN said the meeting should produce practical measures to strengthen local refining, including a stable crude supply system, a clear domestic crude pricing framework, improved access to financing and the wider adoption of the Naira-for-Crude arrangement.

The association said access to crude remains a major challenge for domestic refiners despite an improvement in supplies during the second quarter of 2026. It stressed that simply allocating crude to refineries would not solve the problem unless the transactions were commercially sustainable.

According to CORAN, the cost of transporting crude, differences in crude quality, delivery locations, evacuation expenses and financing requirements should all be considered when determining prices for crude supplied to Nigerian refineries.

The group also renewed its demand for the Naira-for-Crude policy to be made a permanent part of Nigeria’s industrial strategy. It argued that refiners face significant financial pressure when they purchase crude in dollars but sell most of their refined products in naira.

CORAN proposed a transparent system that would allow eligible domestic refineries, including modular plants and new operators, to purchase Nigerian crude and settle qualifying transactions in naira.

The association further expressed concern over Nigeria’s continued reliance on imported petroleum products. While acknowledging that imports could be needed when domestic supply falls short, it said imports should gradually become a backup mechanism rather than remain central to the downstream market.

It warned that excessive dependence on imported fuel would increase demand for foreign exchange, expose the country to international shipping costs and global disruptions, and shift employment and refining profits outside Nigeria.

Financing was also identified as a major barrier to refinery development. CORAN called for a dedicated funding framework involving development finance institutions, banks, pension funds, infrastructure investors and other private capital providers.

The proposed framework, it said, should include longer repayment periods, credit guarantees, refinancing options and support for construction-related risks.

The refinery owners also urged the government to improve infrastructure for moving crude and petroleum products, including pipelines, storage facilities, depots, rail connections and marine transportation.

CORAN said Nigeria’s heavy dependence on road transportation has raised operating costs for refiners and consumers while contributing to road damage and transportation-related risks.

The association urged the Federal Government to regard refining as strategic industrial infrastructure because of its potential to create jobs and stimulate investment in areas such as engineering, transportation, construction, petrochemicals and manufacturing.

It also called for stronger implementation of the Domestic Crude Supply Obligation, commercially viable crude swaps, shared infrastructure and a long-term plan to position Nigeria as a major refining centre in Africa.

CORAN said Nigeria should develop a refining system that accommodates large-scale, medium-sized and modular facilities, particularly around crude-producing regions and major consumption centres.

Meanwhile, Dangote Petroleum Refinery is expected to formally commence the next stage of its planned initial public offering on Monday, with the signing ceremony scheduled to take place in Lagos.

The refinery has received approval from the Securities and Exchange Commission for an offer of 4.1 billion ordinary shares at N525 each. If fully subscribed, the offer could raise about N2.15 trillion.

The SEC also registered the company’s existing 120.13 billion ordinary shares as part of the listing process.

The planned IPO would give investors an opportunity to acquire an interest in one of Nigeria’s largest industrial projects, as the 650,000-barrel-per-day refinery moves towards becoming a publicly traded company.