It has become necessary to strengthen Nigeria’s domestic refining industry with a view to reducing dependence on imported petroleum products and boosting the economy.

The Crude Oil Refinery Owners Association of Nigeria (CORAN) expressed the stance in a position paper titled “Position Paper on the Urgent Need for Strategic Government Intervention to Strengthen Nigeria’s Domestic Refining Industry,” and called on the Federal Government to emulate the recent intervention by United States’ President, Donald Trump in his country’s refining sector.

The association asserted that Nigeria had an even stronger case for government intervention because local refinery operators faced foreign-exchange pressures, high borrowing costs, limited access to long-tenor financing, crude supply challenges, inadequate infrastructure, and high logistics costs.

According to CORAN, “It is sound industrial policy. It is an energy-security policy. And ultimately, it is economic policy”.

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The group expressed concern that Nigeria, despite being one of Africa’s largest crude oil producers, continued to experience difficulties in supplying crude to domestic refineries on commercially workable terms.

It said that during the first quarter of 2026, 61.9 million barrels were allocated to domestic refineries while producers offered 68.7 million barrels, but only 28.5 million barrels were actually delivered.

According to the association, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) identified pricing gaps between producers and domestic refiners as one of the major reasons crude offered did not translate into completed transactions.

It, however, acknowledged improvements in the second quarter, saying NUPRC reported that 53.7 million barrels of crude oil and condensate were supplied to local refineries, representing reported Domestic Crude Supply Obligation performance of 97.4 percent.

“CORAN acknowledges and commends this improvement,” it stated. The association, however, stressed that crude allocation alone was insufficient, noting that refineries required crude delivered under commercially sustainable conditions.

“A refinery does not consume an allocation on paper. It consumes crude delivered under commercially sustainable terms,” CORAN stated. It called for greater consideration of pricing, transportation, evacuation infrastructure, crude quality, financing, payment arrangements and proximity to producing assets when determining crude supply arrangements.

The refinery owners also called for a commercially sensible pricing template for crude supplied to domestic refineries. They acknowledged that international benchmarks such as Brent, WTI and Platts were useful market references but argued that they should not be applied mechanically where refiners were also required to bear separate evacuation and logistics costs.

The association proposed a Domestic Refinery Crude Pricing Framework that would consider internationally recognised crude benchmark values, quality differentials, the actual point of delivery, avoided international freight and insurance costs, domestic evacuation and logistics costs, proximity between producing fields and refineries, as well as reasonable commercial margins for producers.

“The objective is not subsidised crude. The objective is correctly priced crude,” CORAN stated. The refinery owners also expressed concern over the resurgence of petroleum-product imports, urging the government to ensure imports increasingly serve only as a mechanism for addressing supply gaps.

They cited NMDPRA data showing that domestic PMS supply fell from approximately 32.5 million litres per day in June 2026 to 25.8 million litres per day in July, while petrol imports rose from about 18.1 million litres to 19.7 million litres per day.

The association said Nigeria needed adequate petroleum-product stocks and was not advocating policies that could create artificial shortages. However, it warned that a continuous import regime alongside growing domestic refining investment could weaken incentives for existing and prospective refineries.

“A continuous import regime existing alongside substantial domestic refining investment exports Nigerian jobs and refining margins, places additional demand on foreign exchange, weakens investment incentives for existing and prospective refineries, exposes Nigeria to international freight disruptions and geopolitical shocks, and ultimately undermines the country’s aspiration to become a petroleum-product refining and export hub,” it stated.

The group called for import licences to increasingly be calibrated against independently verified domestic production and supply gaps. It added that domestic production capable of meeting equivalent specifications and commercial requirements should receive priority in the Nigerian market.

The association identified access to finance as one of the biggest constraints facing Nigeria’s emerging refining industry. It said refineries were capital-intensive projects requiring substantial investment in processing units, storage facilities, utilities, pipelines, loading facilities, environmental infrastructure, laboratories, fire-protection systems and working capital.

It further urged the government to treat refineries as industrial infrastructure rather than merely downstream petroleum businesses. “Every barrel refined within Nigeria has the potential to retain economic value that would otherwise leave the country,” it stated.

According to the association, domestic refining supports employment, engineering services, fabrication, transportation, petrochemicals, lubricants, plastics, construction materials and other industries while conserving foreign exchange.

It called for a network of large, medium-sized and modular refineries strategically distributed around producing basins and major consumption centres. “The success of one refinery should not mark the completion of Nigeria’s refining ambition. Nigeria requires an ecosystem,” CORAN stated.

To address the challenges, CORAN called on the Federal Government to convene an urgent Presidential Refining Industry Roundtable involving the association, NUPRC, NMDPRA, NNPC Limited, crude producers, financial institutions, infrastructure investors and relevant government ministries.

The association proposed 10 priority actions, including the full institutionalisation of naira-for-crude, development of a domestic crude pricing template, stronger enforcement of the Domestic Crude Supply Obligation under Section 109 of the Petroleum Industry Act and increased use of crude swaps.

It also called for the progressive reduction of petroleum-product imports, creation of a refinery development financing framework, development of shared petroleum-product infrastructure and establishment of strategic petroleum-product reserves.

The group further proposed regulatory and fiscal incentives for refinery expansion, particularly investments in conversion units capable of increasing domestic production of PMS, AGO, aviation fuel and LPG.

“Government intervention should therefore increasingly move away from subsidising consumption and toward enabling production,” it stated. The association added, “Support the refinery. Support the pipeline. Support the storage terminal. Support access to commercially priced Nigerian crude. Support long-term industrial finance.”

The CORAN said Nigeria should ultimately become a refining hub for Africa. “Nigeria should not continue exporting crude, exporting jobs and importing the same petroleum products at considerable economic cost.

“Our crude must increasingly power our refineries. Our refineries must increasingly supply our market. And Nigeria must ultimately become a refining hub for Africa. That should be the destination of petroleum-sector reform,” the association stated.

Indigenous oil and gas company, Ingentia Energies Limited, has appointed a former Shell executive, Engr Victor Agbaroji, as its new Managing Director/Chief Executive Officer.

It was gathered that Agbaroji assumed office on 1 September 2026, following the completion of the tenure of the company’s interim managing director, Engr Charles Odita, who led the firm between March and August 2026.

The company disclosed this in a statement on Tuesday, after a leadership transition ceremony held in Lagos.

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Speaking during the event, Odita said his six-month tenure was productive and expressed confidence in Agbaroji’s ability to accelerate the company’s growth.

“It is my privilege today to hand over the affairs of Ingentia Energies Limited to the incoming managing director, Engr Victor Agbaroji. The company has achieved a lot within the last six months; it is our desire that the new Managing Director will take us to the next level, and I am confident that as an industry veteran, he would hit the ground running and accelerate the company’s growth trajectory,” Odita stated.

In his acceptance remarks, Agbaroji said he would consolidate the gains made under the outgoing management while focusing on safety, talent development, innovation and cost competitiveness.

“Our immediate focus is to consolidate and sustain the gains we have made. Ingentia Energies has set the pace among its peers in growing the company since the acquisition of its licence, and we intend to maintain that momentum, holding in high esteem our company’s greatest assets – people – and taking into recognition the importance of safety, talent development, innovation and cost-competitiveness. IEL will ensure that our people work safely and return home to their loved ones every day. At the same time, we will continue to develop talents, improve efficiency, embrace innovative ways of creating value, and deliver strong returns to our shareholders and stakeholders while affirming our commitment to supporting Nigeria’s energy aspirations, including the national target of increasing crude oil production to 3 million barrels per day,” the new MD said.

According to the statement, Agbaroji brings more than 31 years of experience across the oil and gas value chain to the new position.

He began his professional career as a well-test engineer, gaining experience across several fields before moving to Shell as a reservoir engineer.

During his career at Shell, he held various positions covering operations engineering, corporate petroleum engineering, corporate planning and economics.

The company said he contributed to portfolio optimisation initiatives that supported the emergence of Nigeria’s indigenous marginal field operators.

Agbaroji also served as front-end development manager for major gas projects, including gas supply initiatives for fertiliser production.

At the global level, he was global operations manager for reserves reporting across the Shell Group, overseeing activities spanning Asia, Europe, Australia and North America.

He subsequently moved into Nigeria’s independent oil sector, where he brought international industry practices into indigenous operations.

Before joining Ingentia Energies, Agbaroji led technical advisory, risk management and project delivery support services for emerging energy companies.

President and Chief Executive of Dangote Industries Limited (DIL), Aliko Dangote, has commended the Federal Government for implementing bold and transformative economic reforms repositioning Nigeria for sustainable growth, strengthening investor confidence, and accelerating the country’s economic recovery.

According to Dangote, the ongoing fiscal, monetary, and regulatory reforms have contributed significantly to improving macroeconomic stability, enhancing productivity across key sectors, increasing Nigeria’s attractiveness as an investment destination, and fostering a more resilient business environment. He noted that the positive outcomes emerging from the reform agenda underscore the importance of consistent, market-driven policies in advancing national development and economic prosperity.

“The economic reforms being implemented by the Federal Government are beginning to yield tangible results. We are witnessing improved economic activity, stronger investor confidence, increased industrial productivity, and a more resilient business environment. These measures are laying a solid foundation for sustainable economic growth and long-term prosperity for Nigeria,” Dangote stated

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He explained that the reforms have created a more enabling operating environment for businesses, particularly large-scale manufacturing and industrial enterprises that are critical to economic diversification, job creation, foreign exchange generation, and national competitiveness. He added that government initiatives aimed at improving efficiency, promoting investment, enhancing transparency, and supporting domestic production are providing a solid framework for industrial expansion.

“We commend the Federal Government for its courage and determination in implementing reforms that are essential for economic transformation. While every reform process comes with initial challenges, the benefits are increasingly evident in stronger economic indicators, improved business confidence, and renewed investor interest in Nigeria,” he said.

Dangote further observed that the government’s favourable policy environment has supported the continued growth and efficient operation of the Dangote Petroleum Refinery and Petrochemicals complex, Africa’s largest integrated refining and petrochemical facility. He noted that policy measures designed to strengthen local refining capacity, reduce import dependence, improve energy security, and encourage value addition have contributed meaningfully to the refinery’s success and Nigeria’s broader economic development objectives.

“The progress being recorded at the Dangote Petroleum Refinery and Petrochemicals complex is closely linked to a policy environment that encourages investment, supports domestic industrialisation, and promotes self-sufficiency. These reforms are helping Nigerian businesses to plan with greater certainty, invest with confidence, and compete effectively on the global stage,” he added.

He stated that the refinery’s increasing production capacity and expanding export footprint are contributing significantly to Nigeria’s economic resurgence by generating foreign exchange earnings, creating employment opportunities, strengthening local supply chains, and positioning the country as a leading energy and manufacturing hub

Reaffirming the Group’s commitment to supporting the Federal Government’s economic agenda, Dangote said Dangote Industries Limited would continue to invest in strategic sectors, drive innovation, promote industrial development, and create sustainable employment opportunities.

“Our vision has always been to support Nigeria’s economic development through transformative investments. Today, we are witnessing how the combination of private-sector commitment and decisive government policies can unlock unprecedented opportunities for national growth. The refinery, petrochemical operations, fertiliser production, and our other industrial investments are helping to build a more self-reliant, competitive, and prosperous economy,” he said.

He expressed confidence that sustained reforms, policy consistency, and stronger collaboration between the public and private sectors would further stimulate economic growth, attract increased foreign direct investment, and reinforce Nigeria’s position as one of Africa’s most attractive investment destinations.

“Nigeria is on the path to becoming one of the world’s leading industrial and economic powers. With continued policy consistency, robust private-sector participation, and investment-led growth, the future of our economy is exceptionally bright,” Dangote concluded.