The Crude Oil Refinery Owners Association of Nigeria (CORAN) has warned that fuel importers in the country could soon be pushed out of the market if they don’t adapt to the rise of local refining.
This warning comes as the Federal Government reinstated the naira-for-crude deal, allowing local refineries like the Dangote Refinery to buy crude oil using the Nigerian currency. This move has drawn criticism from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), which represents fuel importers.
Speaking to the press, CORAN’s Publicity Secretary, Eche Idoko, dismissed claims by DAPPMAN that selling crude in naira harms the economy. He argued that importers are only opposing the policy because it threatens their profits.
“These depot owners don’t want the refineries and pipelines to work because it makes their import business irrelevant,” said Idoko. “It’s like someone who stores water in drums for sale—he won’t want the water pipes to work.”
He explained that CORAN has asked fuel importers to rethink their strategy so they can stay relevant in a refining-driven economy, but they’ve refused. “If they don’t adapt, they will go out of business. Refining is here to stay,” he added.
Idoko also accused some importers of trying to keep Nigeria dependent on imported, substandard fuel, resisting local refining efforts and pushing against the naira-for-crude deal.
He noted that petrol prices had started to fall before the deal was temporarily suspended in March and argued they would have continued to drop with the global dip in crude prices.
“The middlemen don’t take any risk. They just connect buyers and sellers, make money, and leave. They don’t invest in refining or infrastructure,” he said.
Idoko applauded the government for reinstating the naira-for-crude policy, saying it had already led to a drop in petrol prices—from around ₦1,100 per litre to ₦860, thanks to supplies from the Dangote Refinery.
However, importers have complained about the price cuts, saying they are being forced to sell fuel at a loss. Reports say fuel importers lost ₦76.5 billion in March alone, or ₦2.5 billion per day, due to Dangote’s pricing.
DAPPMAN has argued that the naira-for-crude policy gives Dangote an unfair edge and could hurt Nigeria’s foreign exchange reserves. Its Executive Secretary, Olufemi Adewole, warned that trading crude in naira instead of US dollars could discourage international investment and isolate Nigeria from global oil markets.
Despite these concerns, the Federal Government has ordered that the naira-for-crude arrangement continue indefinitely.