The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has alleged that 500,000 barrels of crude oil allocated daily for local refineries are being diverted to the international market, leading to the abandonment of several refineries across the country.
Allegations of Crude Oil Diversion
According to PETROAN, oil producers and traders prioritize foreign exchange gains over local refining, disregarding the domestic crude supply obligation meant to support Nigeria’s refining industry.
PETROAN’s Publicity Secretary, Joseph Obele, stated:
“Approximately 500,000 barrels of crude oil per day are allocated for domestic refining, but these volumes often find their way to the international market instead of being processed locally.”
Regulatory Crackdown on Export Violations
In response to these concerns, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued a ban on the export of crude oil allocated to local refineries. The commission warned oil producers and exporters against diverting crude meant for domestic use, emphasizing that violators would face penalties.
NUPRC Chief Executive Gbenga Komolafe reinforced this directive, stating:
“The diversion of crude cargo designated for domestic refineries is a clear violation of the law. Henceforth, the Commission will disallow export permits for such cargoes.”
Potential Economic Benefits
PETROAN believes enforcing this policy will:Boost local refining capacity
Reduce dependence on imported refined petroleum products
Ease foreign exchange pressures
Enhance the petrochemical and agricultural sectors
Lower fuel prices for Nigerian consumers
Call for Immediate Action
PETROAN’s National President, Billy Gillis-Harry, has urged the NUPRC to take decisive action against refineries, cargo vessels, and companies violating this directive. He expressed optimism that proper enforcement will lead to sufficient fuel supply, price reductions, and economic stability.
With this crackdown, the government aims to end crude oil racketeering and ensure that Nigeria transitions from a raw material exporter to a value-added producer.
