The Crude Oil Refineries Owners Association of Nigeria (CORAN)o on Wednesday warned that the Nigerian petroleum industry may suffer imminent collapse if steps are not taken to stop the disruptions in the sector by key stakeholders.
In its message on Nigeria’s 65th Independence Day celebrations, the Momoh Oyarekhua-led organisation appealed to the federal government to urgently intervene in addressing the rising disputes within the petroleum sector, warning that prolonged conflicts could destabilise Nigeria’s energy security, undermine private refinery operations, and disrupt the wellbeing of millions of citizens.
According to CORAN, the ongoing disagreements among key players pose an immediate risk to the stability of the industry, stressing that without prompt and decisive government action, the disputes will continue to threaten private refinery operations and widen the country’s dependence on imported petroleum products.
CORAN stressed that no union or group of individuals should be allowed to unilaterally block the supply of crude oil or gas to any refinery in violation of existing agreements. Such actions, it noted, undermine not only contractual obligations but also the broader national interest.
For this reason, CORAN called on the federal government to restore sanity and fairness by ensuring that contractual rights are respected and disputes are resolved through transparent dialogue and fair processes.
The association also recommended that the government should convene all stakeholders in the oil and gas refining value chain to deliberate on a binding framework that protects supply contracts, encourages investment, and secures the national economy from recurring disruptions.
The group emphasised that the survival of private refineries was indispensable to achieving energy self-sufficiency, safeguarding foreign exchange reserves, and protecting household welfare.
CORAN highlighted the significant contributions of private refineries to Nigeria’s economy, emphasising that its members, made up of locally owned refining businesses, have invested heavily—often with limited access to funding—in projects that aim to provide the country with a sustainable energy future.
These refineries, it said, help reduce reliance on imported petroleum products, saving the government scarce foreign exchange, and creating opportunities for local employment and industrial development.
“Despite these efforts, CORAN acknowledges that private refiners continue to face enormous challenges. Access to crude oil feedstock remains one of the most pressing obstacles, often complicated by regulatory delays and supply chain disruptions.
“Additionally, the business environment is hampered by the disruptive actions of vested interests who benefit from the continuation of import dependence. Such actors are resistant to change and are using disputes within the industry as leverage to undermine the growth of the local refining sector,” the organisation stated.
The association maintained that Nigeria cannot afford to have its energy system held hostage by conflicts that drag on without resolution. It argued that the resilience of the nation’s refining industry was critical to economic health, job creation, and the stability of every Nigerian household that relies on affordable energy.
By protecting private refinery operators and ensuring uninterrupted access to crude and gas supply, the government, it said, would be reinforcing one of the country’s most strategic pillars of economic security.
CORAN further stressed that the federal government must act decisively, impartially, and without delay. It insisted that investigating all claims and counterclaims in an impartial manner is the only way to foster mutual trust and long-term peace within the industry.
Moreover, the association argued that a government-led resolution process would not only prevent energy instability but also send a clear signal to investors that Nigeria is serious about building a sustainable and predictable petroleum sector, which takes the welfare of its citizens into account.
Emmanuel Addeh
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