Nigerian Refiners Warn of Crude Oil Diversion Impact

Refiners in Nigeria, represented by Emmanuel Ihenacho, Chairman of the Board of Trustees of the local refiners' umbrella group, have raised concerns about the diversion of crude oil allocations, which they warn is undermining the utilization of local refineries and threatening the financial stability of the sector. During a visit to the Nigerian Upstream Petroleum Regulatory Commission, Ihenacho noted that while 483,000 barrels are often allocated to domestic refineries, only a fraction reaches them due to operational constraints and trade flexibility provisions.

This diversion represents lost jobs and economic opportunities for Nigeria. Ihenacho emphasized that the current allocation policies are insufficient, as they do not guarantee consistent feedstock supply, leaving many refineries underutilized.

He called for stricter enforcement of domestic crude supply obligations and the development of standardized crude sale agreements to ensure fair pricing and transparency in allocations. The ongoing reforms in the upstream sector are expected to address these issues, but immediate action is needed to stabilize the supply chain.