The Crude Oil Refineries Association of Nigeria (CORAN) has raised concerns over what it describes as systemic policy failure by the Federal Government, warning that the lack of support for modular refiners—not the Dangote Petroleum Refinery—is the real threat to competition in Nigeria’s downstream petroleum sector.
Speaking in an interview with our correspondent, CORAN’s Publicity Secretary, Eche Idoko, criticized the federal authorities for failing to implement the Domestic Crude Supply Obligation (DCSO), which ensures equitable access to crude oil for all refiners, especially smaller operators. According to Idoko, this failure is quietly enabling the dominance of larger players while threatening the survival of modular refineries across the country.
“This isn’t about Dangote being a monopoly,” Idoko said. “The real danger lies in the government’s refusal to enforce fair policies that allow smaller, licensed refineries access to crude oil. Without this, there can be no meaningful competition.”
The development comes amid growing public concern that the $20 billion Dangote Refinery may end up monopolizing Nigeria’s domestic fuel market. However, CORAN insists that if the government ensures crude availability and financing support for smaller refineries, a competitive and healthy energy sector will naturally emerge.
CORAN cited several existing modular refineries contributing to domestic production, including:
Aradel Refinery, Rivers State – 11,000 barrels per day (bpd)
Waltersmith Refinery, Imo State – 5,000 bpd
OPAC Refinery, Delta State – 10,000 bpd
Clairgold Refinery (under development), Delta State – 20,000 bpd
Azikel Refinery (nearing completion), Bayelsa State – 12,000 bpd
“These refineries exist and are functional or nearing full operation. But the reality is, without crude, they’re like hospitals without medicine,” Idoko said. He added that most smaller refineries have struggled to stay afloat because they cannot source feedstock at sustainable prices, unlike Dangote, who can access private deals due to scale and capital strength.
CORAN is also urging the federal government to create a Midstream Refinery Development Fund (MRDF) to support the acquisition of critical components like catalytic reformers and desulfurization units—technologies necessary to produce petrol and cleaner fuels.
“Smaller refineries need financial support to build the infrastructure that enables them to produce PMS and meet regulatory standards,” said Idoko. “We’re not asking for handouts. We’re asking for access, support, and fairness.”
He emphasized that the same model used in Nigeria’s gas and agriculture sectors—such as intervention funds, subsidies, and infrastructure-sharing frameworks—could be replicated to stimulate domestic refining and reduce fuel import dependence.
A recent report by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that 82% of Nigeria’s crude oil produced in the first quarter of 2025 was exported, leaving just 18% for local refining. CORAN argues that this imbalance reflects a policy failure that leaves the country vulnerable to external price shocks and supply chain disruptions.
“Exporting most of our crude while struggling to import refined fuel makes no sense. We’re losing jobs, forex, and energy security. This can’t continue,” Idoko stated.
CORAN is calling on the Federal Government to take immediate steps to prevent a looming monopoly and promote refinery decentralization by:
Enforcing the Domestic Crude Supply Obligation (DCSO) for all refiners
Establishing a Midstream Refinery Development Fund (MRDF)
Expanding Nigerian Content Development Board (NCDMB) financing for modular refineries
Passing pro-competition laws to encourage infrastructure sharing and market fairness
“The truth is that Nigeria is big enough for Dangote and every other investor. But when the government makes it difficult for smaller refiners to access crude or capital, they’re not just killing competition—they’re handing over the market to one player,” said Idoko.
He warned that unless urgent policy interventions are made, the government itself would be responsible for creating the monopoly it now fears.
With Nigeria still spending billions annually on imported fuel, industry stakeholders insist that developing local refining capacity is not just an economic strategy, but a national security imperative. CORAN maintains that modular refineries can collectively create over 100,000 jobs across operations, logistics, and petrochemical industries.
“This is a revolution in waiting. But it needs government support to become a reality. The choice is clear: act now, or watch the market fall into monopoly through policy neglect,” Idoko concluded.