Chairman of the Crude Oil Refinery Owners Association of Nigeria (CORAN), Momoh Oyarekhua, has backed President Bola Tinubu’s approval of a 15 per cent import duty on petrol and diesel, saying the policy will strengthen Nigeria’s local refining industry, reduce foreign exchange pressure, and create more jobs.
Speaking in an interview with ARISE News on Thursday, Oyarekhua described the decision as a “successive and strategic move” by the President to reposition the downstream oil sector for growth and sustainability.
“I have to thank Mr President for listening to us in the refining industry. These are successive decisions he’s making to enable the refining industry to work in Nigeria. First was the Naira-for-Crude policy, which we started advocating for since 2021 and which he recently approved. Now, with the duty on imported petroleum products, we see another major step in the right direction,” he said.
The CORAN chairman explained that the new policy would address the “unhealthy competition” between local refinery operators and importers of petroleum products, paving the way for refineries within Nigeria to thrive.
“We, the crude refinery owners, actually wanted an outright ban on the importation of petroleum products into Nigeria. At our first industry summit last year, we made it clear that Nigeria should become a net exporter of petroleum products,” Oyarekhua stated.
According to him, there are currently five operational private refineries in the country — the Dangote Refinery, OPAK Refinery, Watersmith Refinery, Aradel Refinery, and Edo Refinery — all producing and supplying petroleum products into the local market.
“We are not waiting for refineries to come on stream; they are already operating. If Nigerians patronise locally refined products, there will be no need for the 15 per cent duty. The levy only applies to imported petroleum products,” he clarified.
Oyarekhua further argued that the entry of local refineries into the market has already begun yielding positive economic effects.
“Since the Dangote Refinery came on stream, we’ve seen the price of foreign exchange start to come down. This shows the impact of local production. About 45 to 50 per cent of our forex used to go into fuel imports, but now we’re reducing that pressure,” he said.
He added that beyond stabilising prices, the policy would drive investment, generate jobs, ensure energy security, and position Nigeria as a potential exporter of refined products.
“There are several advantages — local job creation, increased investment, and energy security. If there’s a global crisis and we can’t import, producing locally ensures that Nigerians still have access to fuel. It’s only when we refine locally that we become self-sufficient and even able to export,” Oyarekhua concluded.
Boluwatife Enome
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