The Crude Oil Refiners Association of Nigeria (CORAN), the umbrella body of indigenous crude oil refiners has appealed to the Central Bank of Nigeria(CBN), to create crude refinery intervention fund like that of Agricultural Credit Fund or the Pharmaceutical Fund domiciled at the apex bank with a view to driving effective business operations in Nigeria
The association’s Board of Trustee’s chairman, Chief Emmanuel Iheanacho,gave the suggestion when he led the officers on a courtesy visit to the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.
The meeting which was in a bid to interact with all relevant regulatory agencies,after CORAN formal registration and was chaired by the NMDPRA’s Executive Director Hydrocarbons Processing Plants, Installation and Transportation Infrastructure (HPPITI), Mr. Francis Ogaree.
Shedding more light on its demand,the association, through its secretary, Barrister Olusegun Ilori ,who was directed to present CORAN’s position, appealed to the Authority to ensure that all incentives that were given to Dangote Refinery are also extended to other refineries.
The association also urged NNPC/NMDPRA and NUPRC to engage with the licensed modular refineries in order to develop an appropriate commercial model that would guarantee reliable feedstock
CORAN also stated that NMDPRA renewal fee of modular refinery license guidelines should be revisited and possibly reduced by way of 50 per cent waiver,which should be on the company-by-company assessment, and granted to only companies with credible challenges.
It advised that for annual monitoring of modular refineries to be carried out by the Authority to ensure compliance with government policies,adding that NNPC should consider taking equity or grant loans to modular refineries via the provision of reformer/other requirement units to ensure adequate production of PMS based on agreed offtake conditions.
According to the association, issuance of the import duty waivers for modular refinery equipment should be done by the Federal Ministry of Finance after due certification of the equipment that qualified for waiver is done by the Ministry of Petroleum Resources.
CORAN said that modular refinery owners with evidence of feedstock challenge be given preference in allocation of NNPC crude oil.
The association suggested that Crude oil from the NNPC be sold to modular refinery owners in naira equivalent for that day with guarantee that all the refined PMS be sold in naira equivalent for that day in-country.
“The Federal Ministry of Industry, Trade, and Investment (FMITI) to collaborate with Ministry of Petroleum Resources (MPR) on the African Continental Free Trade Area (AfCFTA) with the view of creating a Petroleum refining hub in Nigeria while leveraging on the agreement.Quarterly progress reports on modular refinery projects be sent to the Ministry by NMDPRA.The Ministry should liaise with Nigerian Immigration Service to resolve problems associated with issuance of expatriate Quota,” they added.
Responding to CORAN by the management of NMDPRA led by the Executive Director Hydrocarbons Processing Plants, Installation and Transportation Infrastructure (HPPITI), Mr Francis Ogaree and the Executive Director Economic Regulations and Strategic Planning (ERSP),Dr. Zainab Gobir appreciated the association for coming and assured the team that Mr President, Muhammadu Buhari is committed to see that more refineries are functional.
Mr Francis Ogaree further assured CORAN of the Authority’s support and urged they should reach out to the committee that will be setup to work with refineries and hinted of a database of challenges and progress report on its operations.
Besides, Engr. J.G Musa and Mrs. Ngozi Nwokocha who addressed the issues of license renewal fees and the need for CORAN to actively participate in the regulations concerning Midstream and Downstream some of which has been concluded with our members not making their input.
Gobir assured that her office will create a dialogue for more communication between the refiners and the Authority.The Association has been assured of the government’s economic strategic plan to boost refining in Nigeria from a 0.01% to 1%.