Modular refineries decry exclusion from naira-for-crude deal decry exclusion from naira-for-crude deal operators in Nigeria have raised the alarm over their continued exclusion from the Federal Government’s naira-for-crude oil policy, warning that the deliberate sidelining of indigenous refiners could derail efforts to boost local refining capacity and strengthen the naira.
The Crude Oil Refiners Association of Nigeria (CORAN), which represents modular and smaller-scale refinery operators, expressed dissatisfaction with the Technical Sub-Committee on the Crude and Refined Product Sales in Naira, accusing the body of favouritism and a lack of transparency in the ongoing implementation of the initiative.
In a recent interview with our correspondent, CORAN’s Publicity Secretary, Mr. Eche Idoko, refuted government claims that indigenous refiners participated in the latest meeting convened by the committee. According to him, only the Dangote Petroleum Refinery — the largest private refinery in Africa — was involved in the discussion, while smaller and mid-level refineries were completely shut out.
“We didn’t get any wind about that meeting,” Idoko stated. “The technical committee has chosen to ignore CORAN and modular refineries. Only Dangote was invited and is currently benefiting from the deal. The claim that local refiners attended is grossly misleading.”
CORAN listed several excluded facilities, including OPAC, Edo Refinery, Walter Smith, Aradel, and Duport, all of which have functional or near-ready operations with capacities to support domestic supply of refined products.
The naira-for-crude deal, introduced on October 1, 2024, is a policy aimed at improving energy security, reducing foreign exchange demand, and promoting local content by allowing local refiners to purchase crude in naira at pre-agreed rates. The government touted the initiative as a game-changer capable of conserving foreign reserves and lowering pump prices.
However, during the pilot phase, only the 650,000 barrels per day Dangote Refinery was included. While the Ministry of Finance promised an expansion of the policy in its second phase, modular refinery operators claim they have seen no progress.
A communique issued after the recent committee meeting stated that stakeholders—including the Special Adviser to the President on Energy, Olu Verheijen, officials of the Nigerian National Petroleum Company Limited (NNPCL), and regulators like the NUPRC, NMDPRA, and NPA—had reviewed progress and reaffirmed their commitment to the initiative.
But Idoko dismissed the statement, urging the government to match its rhetoric with action. “The committee owes Nigerians fairness. It is very discouraging how indigenous refiners are being treated,” he said. “This exclusion runs contrary to President Tinubu’s broader economic and energy reform agenda.”
The ongoing exclusion has raised concerns about the future of the modular refinery ecosystem in Nigeria, which was championed by the government as a means of decentralizing fuel production, creating jobs, and reducing the strain on the country’s overburdened import-dependent fuel system.
Stakeholders fear that if the policy continues to benefit only large-scale operators, smaller indigenous players may shut down or suspend their investments, worsening fuel scarcity and undermining the energy transition drive.
“This is not about politics or rivalry; it’s about fairness and strategic national interest,” Idoko emphasized. “We are ready and willing to be part of this process and play our part in refining Nigeria’s crude. The government must act now.”
The naira-for-crude deal suffered a temporary suspension in March after the NNPC revealed it had forward-sold all available crude until 2030. This sparked public outcry, especially from domestic refiners expecting to participate in the second phase of the agreement.
Following pressure from stakeholders and media reports, the Federal Government, on April 9, announced that the policy would continue beyond its pilot phase. However, as of mid-May, there has been no substantial update from the Ministry of Finance on the inclusion of other refinery operators.
When contacted, the Ministry’s Director of Press promised a response but failed to issue an official clarification before publication.
Industry experts have warned that the lack of communication and inclusive stakeholder engagement could undermine the credibility of the policy and discourage private sector confidence.
CORAN has appealed to President Bola Tinubu and the Minister of Finance, Mr. Wale Edun, to immediately intervene by directing the technical committee to broaden participation in the deal and avoid monopolizing the crude supply framework.
“We have invested billions of naira and are critical to achieving energy self-sufficiency,” Idoko said. “Excluding us defeats the very essence of the reform agenda. We urge the government to revisit its position and allow equity, transparency, and inclusiveness to define this policy.”
As Nigeria continues to grapple with volatile fuel prices, dwindling foreign reserves, and economic headwinds, the call for inclusive policies in the petroleum sector is gaining traction. The fate of local modular refiners, many argue, could determine whether the country’s journey toward refining independence will succeed or stall once again.