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CORAN Counsels FG to Curb Petroleum Imports

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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”.

READ ALSO: Dangote Credits Tinubu’s Economic Reforms with Driving Nigeria’s Economic Recovery

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.

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Gas Infrastructure Fund Sets Terms for Indigenous Access to Funding

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Gas development, a major carbon reduction move - Seplat Energy

Midstream and Downstream Gas Infrastructure Fund (MDGIF) has said that indigenous companies seeking to partner with it and access its equity must show secured gas supply and a confirmed buyer, because no gas project is bankable without both.

The Fund was established under the Petroleum Industry Act (PIA), and designed as the “master key” for unlocking gas processing, infrastructure and bankability.

Deputy Director at MDGIF in the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Engr Elvis Duruji made this known at the OTL Africa Downstream Energy Week in Lagos. He spoke at a session on: “Scaling Energy Options: Unlocking Gas and Renewables through Processing and Infrastructure.”

READ ALSO: UN Engages NCDMB to Deepen Female Access to $40m Oil, Gas Fund

Expatiating further, Duruji said the two conditions decide whether the fund takes an equity stake in a project, since they determine its returns and viability, insisting that the security of the gas feedstock is very important. He further noted that project operators must locate their sites at a gas processing plant or close to a CNG mother station.

The Fund, he added, has used N671 billion to catalyse N1.6 trillion from private Nigerians.

“The Fund has partnered on 31 projects covering 205 infrastructure assets at different stages of execution. Of these, 127 are at different levels of project management, and 10 have been commissioned.

Duruji cited Topline Limited’s mini-LNG plant in Delta State as a success story. “For three years, a Nigerian company, Topline, was looking for a credit facility from InfraCredit, and no one was able to loan them money because they are Nigerian,” he said. “They came to the fund and we partnered with them.”

He said Topline is now the first indigenous mini-LNG operator in Nigeria, with commissioning due before December.

He also cited a programme to convert 20 university campuses to CNG through daughter stations.

“Three CNG stations are operational and 14 more are to be commissioned before December. Duruji added that the fund is working with fuel-station partners, including Ibile Oil and Gas Corporation, which is delivering 15 CNG stations across Lagos.

“These are our success stories,” he said.

He said, for CNG projects, proximity to the gas processing plant “is very important. You must have security of gas supply. We also ensure that you have a gas supply agreement with producers. What is the volume and price that the producer is willing to give to our would-be equity partner? This always affects their credit returns and internal rate of return. This is what will determine the project viability, and this is key,” he said.

Duruji also noted that offtake is equally critical adding that. “We need to know the offtakers and the regasification facility. The same thing for CNG, you need to get a compressor,” he said.

According to him, the MDGIF intervenes in gas projects where commercial lenders will not, because “most Nigerian companies are in trading and operating marginally at the downstream level because the sector is highly capital intensive,” adding that no Nigerian bank would give single-digit loans for exploration and production.

“Nigerian Banks lends at as much as 30 per cent interest, whereas, foreign firms coming into Nigeria to explore, by contrast, have access to cheap loans in single digits from their home country financial institutions,” he said.

The MDGIF, he further explained, intervenes “by pricing the risk, coming up with mitigation and catalytic equity, which we now use to bring that barrier to a level to allow Nigerians who are interested to come into the midstream to partner through the equity finance that we will provide without interest.”

“We bring in the catalytic equity, which is about 49 percent, because we want to allow you to be the operator. We will stay with the private investor and walk them through all that,” he added.

He said MDGIF brings “minority equity, due diligence and risk governance” and uses these as catalytic capital “to make the projects bankable, to make them balanced capital structure that will attract private confidence.”

He identified processing plants, transport, storage and last-mile distribution as the main gaps. Non-associated gas, he said, is “very expertise and capital intensive,” and pipeline networks are needed to move gas from the reserve to the last mile.

“The more gas infrastructure we roll out, the more we are helping the energy system where renewables cannot,” he said.

Duruji identified three mandates of the MDGIF: to increase domestic gas consumption, to aggregate flared gas and bring it into the domestic market, and to mobilise private investors who lack the funds to play in the midstream.

“The MDGIF has three mandates: increase domestic gas consumption, aggregate flared gas and bring it into the domestic market, that is key,” he said. “The other mandate is to mobilise private investors that do not have the funds to be able to play in the midstream, bring their funds.”

He added: “We also have the mandate to reduce gas flare in Nigeria exploration and production sites.”

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UN Engages NCDMB to Deepen Female Access to $40m Oil, Gas Fund

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NCDMB Emerges Best MDA In Ease Of Doing Business Ranking

Easing access to the dedicated $40 million Women in Oil and Gas Fund is the focus of ongoing strategic conversation between the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women), and the Nigerian Content Development and Monitoring Board (NCDMB).

Biztellers reports that the two bodies are keen to collaborate to ensure that more women-owned businesses and professionals benefit from industry’s opportunities and consequently play a stronger role across the sector’s value chain.

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Recall that in April 2021, the NCDMB established a $20 million fund dedicated to supporting women-owned and women-led businesses in the oil and gas sector, which the Nigerian Export-Import Bank (NEXIM) complemented by matching the fund with an additional $20 million.

However, despite this significant commitment and favorable loan terms, the uptake of the scheme has remained below expectations to date.

The discussions were advanced last week when the UN Women’s Country Representative to Nigeria and the Economic Community of West African States (ECOWAS), Ms. Beatrice Eyong, led a delegation to the NCDMB’s Abuja liaison office.

The team was received by the Board’s General Manager of Corporate Communications, Dr. Obinna Ezeobi, on behalf of the Executive Secretary, Engr. Felix Omatsola Ogbe.

The meeting explored proposed capacity-building initiatives for NCDMB personnel, aimed at mainstreaming gender perspectives into the Board’s project planning, budgeting, and execution frameworks.

Other key areas of discussion included vendor development schemes to better position women-led oil and gas businesses for industry opportunities, strategies to raise awareness of available financing options, and potential affirmative procurement measures designed to expand the participation of women-owned companies across the oil and gas value chain.

The UN official commended NCDMB for its ongoing gender inclusion efforts, noting that the Board is already implementing several measures consistent with its mandate.

She proposed conducting a study to identify the reasons women face challenges in accessing the financing facility, including potential barriers related to documentation, business registration, tax compliance, and limited awareness.

She further highlighted key initiatives currently being undertaken by the UN Office, such as programmes on women’s economic empowerment, leadership development, and the elimination of gender-based violence, among others.

Ezeobi welcomed the proposals and affirmed the Board’s readiness to partner with UN Women. He highlighted several innovative initiatives already implemented by the Board to create opportunities for women to participate, grow, and lead in Nigeria’s oil and gas industry.

These include the establishment of a dedicated funding scheme with NEXIM Bank that enables women-owned or women-led firms to access financing at a highly competitive 5 per cent interest rate, as well as the creation of a Diversity Sectoral Working Group within the Nigerian Content Consultative Forum (NCCF), designed to mainstream women’s issues into local content policy and decision-making processes.

The Board also supports associations of women who work across the Energy Industry value chain, where they network, build confidence and links to progress their careers or businesses.

Ezeobi noted that NCDMB has also invested significantly in capacity-building programs for women entrepreneurs and business leaders, covering critical areas such as business sustainability, corporate governance, and strategic management.

The Board has further supported women’s participation in technical occupations while encouraging young girls to pursue careers in science, technology, engineering, and mathematics (STEM).

He acknowledged that women remain underrepresented in the oil and gas industry, citing limited access to technical education, finance, and commercial opportunities, as well as entrenched perceptions of the sector as predominantly male.

Ezeobi reiterated NCDMB’s willingness to collaborate with UN Women to address these challenges and recommended strategies to accelerate the Board’s support for UN Women’s programmes, thereby advancing gender inclusion across the industry.

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Afreximbank Charts Côte d’Ivoire’s Rise as a Regional Growth Leader in WA

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The African Export-Import Bank (Afreximbank) has released its Côte d’Ivoire Country Brief, providing an in-depth examination of the West African nation’s macroeconomic outlook, regional and international trade dynamics, financial sector development and debt sustainability profile.

The brief highlights Côte d’Ivoire as one of Africa’s fastest-growing economies. Home to 33.5 million people and with a nominal GDP forecast at USD116.9 billion in 2027, the country has sustained average real GDP growth of around 6.5% per year between 2021 and 2024, accelerating to an estimated 6.6% in 2025. Growth is forecast to moderate to 5.8% in 2026 before rebounding to 6.2% in 2027, supported by rising crude production, continued infrastructure investment and resilient domestic demand.

The brief also points to a notably improved near-term macroeconomic environment. Inflation fell sharply to just 0.1% in 2025, supported by easing commodity price pressures and government measures to stabilise fuel and food prices, with the CFA franc’s euro peg providing a durable exchange rate anchor. The fiscal deficit narrowed to 3% of GDP in 2025, meeting the West African Economic and Monetary Union (UEMOA) ceiling, backed by stronger revenue collection and ongoing reforms to tax administration and VAT digitalisation.

On trade, this edition charts a significant expansion. Total trade surged from USD26 billion in 2018 to USD57 billion in 2025, anchored by Côte d’Ivoire’s status as the world’s largest cocoa producer, commanding around 40% of global supply, alongside growing exports of cashew nuts, rubber, gold and hydrocarbons.

READ ALSO: Oando Production Hits 42,985 boepd as Revenue Grows 9% in 9M 2026

The February 2026 Calao South gas condensate discovery and rising output from the Baleine field signaled a broadening export base over the medium term. Strategically positioned on the Gulf of Guinea, with the ports of Abidjan and San Pedro acting as principal gateways into Francophone West Africa, Côte d’Ivoire is deeply embedded in regional trade networks, with African markets accounting for around 22% of its goods trade in 2025.

The brief further notes Côte d’Ivoire’s financial sector strength. The country holds the largest banking sector in UEMOA, accounting for more than a third of regional banking assets. Regulatory reforms, including the adoption of Basel II and Basel III standards, have strengthened supervision and resilience, while the launch of the Central Bank of West African States’ (BCEAO) interoperable instant payment platform in September 2025 is broadening access to digital financial services across the economy.

As this edition notes, Côte d’Ivoire “has moved from a period of rapid debt accumulation and elevated debt service pressure towards a more stable debt profile, supported by fiscal consolidation, active debt management and continued multilateral engagement.” This is a trajectory that positions the country to fully capitalise on the ambitious targets of its 2026-2030 National Development Plan.

Afreximbank’s Group Chief Economist & Managing Director Research commented: “Côte d’Ivoire is consolidating its position as a leading West African growth and trade hub. Its expanding energy sector, world-class agricultural base, regional port infrastructure and increasingly sophisticated financial system offer a strong foundation to attract investment, scale value addition and deepen trade links across Africa.”

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