The Nigerian downstream petroleum sector stands at a critical juncture, poised for a transformative shift from import dependency to self-sufficiency. The commissioning of the Dangote Refinery, alongside the emergence of modular refineries, signals a potential refining revolution. However, a simmering dispute between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) threatens to undermine this progress. The Crude Oil Refinery Owners Association of Nigeria (CORAN) has stepped in, appealing for calm and collaboration between the two entities, emphasizing that national interest should supersede individual corporate agendas. CORAN warns that this rivalry could derail the nascent refining revolution and jeopardize the significant economic benefits it promises.
The heart of the disagreement lies in the intricacies of pricing, product supply, and market structure within the downstream sector. DAPPMAN has voiced concerns about potential unfair competition and the arrangements for product supply, fearing marginalization in the evolving market dynamics. Conversely, the Dangote Refinery maintains that the domestic refining industry needs space to stabilize without undue interference, advocating for a market-driven approach. This clash of perspectives has escalated into public exchanges, raising tensions and threatening to polarize the downstream sector. CORAN emphasizes the urgency of resolving this conflict, recognizing the transformative potential of the burgeoning refining industry and the risks posed by internal discord.
CORAN underscores the historical context of Nigeria’s energy landscape. Despite being a major crude oil producer, Nigeria has paradoxically relied heavily on imported refined petroleum products for decades. This dependence has exerted significant pressure on foreign exchange reserves and hampered economic growth. The emergence of domestic refining capacity, spearheaded by the Dangote Refinery and complemented by modular refineries, represents a pivotal moment, offering a pathway to self-sufficiency, reduced forex expenditure, and job creation. CORAN urges all stakeholders, particularly DAPPMAN members and tank farm operators, to recognize this fundamental shift in the energy value chain and embrace collaboration.
The association emphasizes the interconnectedness of the refining and marketing segments within the downstream sector. While refineries are essential for producing refined petroleum products, marketers play a crucial role in product evacuation, storage, and retail distribution. CORAN acknowledges DAPPMAN’s historical role in sustaining fuel supply during the era of import dependence. However, it also stresses that the emergence of indigenous refineries, including the Dangote Refinery, signifies a strategic transition toward self-reliance. Both sides have contributed significantly to the nation’s energy security and deserve recognition. CORAN’s central argument is that the success of the refining revolution hinges on synergy and collaboration, not confrontation.
CORAN advocates for a collaborative approach, urging both refineries and marketers to recognize their interdependence. Refineries require efficient marketing networks for distribution, while marketers need a reliable domestic supply of refined products. This synergy can drive efficiency, stabilize prices, and ensure affordable energy access for all Nigerians. Therefore, CORAN calls for open dialogue, cooperation, and integration across the entire downstream value chain to ensure that all stakeholders benefit from the refining renaissance. This collaborative model will not only optimize the industry’s performance but also ensure its long-term sustainability.
The association emphasizes the historic opportunity presented by the growth of domestic refining. This burgeoning sector has the potential to be an engine of economic transformation, driving growth, creating jobs, and enhancing Nigeria’s energy security. However, this potential can only be realized if stakeholders prioritize collaboration over rivalry. CORAN warns that if the current conflict is allowed to fester, it could suffocate this opportunity before it reaches its full potential. The chairman of CORAN reinforces this message, urging all parties to embrace collaboration and reinvention, emphasizing that the refining renaissance is too important to be derailed by internal divisions. A unified approach is essential to stabilize prices, reduce forex dependence, create jobs, and deliver affordable energy to all Nigerians.
