Nigeria's Government Advocates for Increased Domestic Refining

On September 29, the Federal Government of Nigeria, through Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), stressed the necessity for Nigeria to shift from an economy reliant on crude oil exports to one that emphasizes domestic refining and petrochemical production. This statement was made during the third Nigeria Oil Refining Summit organized by the Crude Oil Refiners Association of Nigeria (CORAN) in Lagos.

Lokpobiri indicated that the government is enhancing the Domestic Supply Obligation (DSO) to ensure local refineries have consistent access to crude oil, which he described as vital for national energy security. He noted that the Nigerian Upstream Petroleum Regulatory Commission has developed a DSO framework in collaboration with various stakeholders.

CORAN Chairman Momoh Oyarekhua raised concerns about domestic refineries struggling to access crude at viable prices and called for institutional reforms to improve the situation, including a domestic crude pricing template.