Indigenous investors have played a crucial role in recent sector developments, with all current functional refineries in Nigeria established by local players.
Stakeholders in the industry, including the Crude Oil Refinery Owners Association of Nigeria and other key bodies, stating that improving crude supply to local refiners is essential.
They argue that this would significantly boost domestic refined product production and facilitate greater FDI inflow into Nigeria’s oil sector.
Eche Idoko, Publicity Secretary of CORAN, stressed the importance of government support for indigenous refiners, noting the absence of significant foreign investments in the past eight years apart from private initiatives like modular refineries.
The call for adequate crude supply was echoed by industry figures such as Chief Ukadike Chinedu of IPMAN, who spoke on the positive impact on local diesel prices when Dangote Refinery began operations.
However, challenges remain, with accusations that IOCs are hindering efforts by local refineries to access local crude by inflating prices.
This situation has led to increased reliance on imported crude, undermining the competitiveness of domestic refining operations.
Despite assurances from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) regarding crude supply obligations, stakeholders continue to press for more concrete support and regulatory clarity to foster sustainable growth in Nigeria's oil and gas sector.
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