Crude Paradox: Inside Nigeria’s Refineries’ Fight Against Commercial Strangulation Despite 53.7m Barrel Supply

In a bid to resolve these persistent bottlenecks, refiners are pushing for a dedicated Domestic Refinery Crude Pricing Framework. Industry stakeholders emphasize that they are not seeking government subsidies; rather, they want "correctly priced crude" that eliminates arbitrary international transit premiums and reflects actual domestic logistical realities. Aligning local purchases blindly with international benchmarks that include phantom shipping costs only serves to artificially inflate domestic fuel prices.

Beyond the spreadsheets of financial analysts, the physical movement of crude remains a logistical nightmare for domestic operators. Nigeria's fragile and heavily sabotaged pipeline networks force refiners to rely on expensive, unsustainable alternative evacuation methods. To combat this, CORAN is urging the Federal Government to prioritize massive capital investments in shared pipelines, modern storage terminals, dedicated depots, jetties, and rail infrastructure to lower the cost of moving feedstock and refined products.

A central pillar of the survival strategy for local refiners is the institutionalisation of the Federal Government's Naira-for-Crude initiative. Analysts argue that this policy must transition from an episodic, emergency intervention into a predictable, permanent industrialisation policy. By anchoring crude transactions in the local currency, the government can shield the refining sector from extreme foreign exchange volatility, protect external reserves, and strengthen the Naira.