Nigerian refiners raise alarm over crude supply shortfalls
Local refiners, represented by the Crude Oil Refinery Owners Association of Nigeria, have voiced concerns about the diversion of crude oil meant for domestic processing. Emmanuel Ihenacho, chairman of the CORAN Board of Trustees, highlighted that inconsistent crude deliveries are leaving refineries underutilised and threatening Nigeria’s energy security. He urged regulators to enforce supply obligations and address pricing and infrastructure challenges. The Nigerian Upstream Petroleum Regulatory Commission, led by Oritsemeyiwa Eyesan, acknowledged these issues and encouraged refiners to seek long-term solutions.
TLDR
- Emmanuel Ihenacho stated that many refineries are underutilised due to erratic crude supply, despite policy provisions for domestic allocation.
- Of the 483,000 barrels often allocated daily, only a fraction reaches local refineries, with the rest lost to operational constraints or re-trading.
- Inconsistent supply undermines financing, workforce confidence, and community benefits, affecting refineries like Edo Refinery, Duport/Pulon, and OPAC.
- Refiners called for strict enforcement of supply obligations, fair pricing frameworks, infrastructure collaboration, and transparent reporting.
- Oritsemeyiwa Eyesan of the NUPRC encouraged refinery operators to secure long-term supply contracts and acknowledged infrastructure bottlenecks as a major challenge.
