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CORAN Warns Refinery Disputes Could Hurt Nigeria’s Economy

Monday Yakubu by Monday Yakubu
September 20, 2025
in Business
0

Dangote Refinery loading bay

The Crude Oil Refiners Association of Nigeria (CORAN) has warned that ongoing disputes between refinery operators, petroleum marketers, and truck drivers’ unions could damage Nigeria’s economic progress.

In a statement signed by its Publicity Secretary, Eche Idoko, CORAN said the fight between the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Dangote Petroleum Refinery was a dangerous distraction.

“What Nigeria cannot afford is for either side’s vested interest to derail the refining renaissance now unfolding. The path forward is clear: collaboration, not confrontation,” CORAN stated.

DAPPMAN had accused Dangote Refinery of cutting petrol prices to force out competitors. The Dangote Group denied the allegation, calling it misleading. CORAN, however, urged marketers to work with local refineries instead of resisting change.

“The rise of domestic refining poses an inherent threat to the old import-dependent business model that sustained depots and bulk marketers for decades. But rather than see this as extinction, CORAN urges tank farm owners and marketers to embrace collaboration with local refineries,” the group said.

CORAN noted that Nigeria had long suffered from importing refined products despite being Africa’s largest crude oil producer. It described the Dangote Refinery and new modular refineries as “the foundation of a new economic windfall” that could save foreign exchange, create jobs, and stabilise fuel prices.

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Meanwhile, Senator Steve Karimi of Kogi West has appealed to unions not to disrupt operations at the Dangote Refinery. His call came after a court order restrained the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and truck drivers from blocking refinery activities.

Karimi described the Dangote Refinery as “a blessing to Nigeria’s economy.” He warned that shutting it down would undo the progress made since fuel subsidies were removed.

“The subsidy removal by the Federal Government is now yielding positive economic impacts, partly because of the coming on board of Dangote Refinery. We need to join hands together to encourage its smooth operation,” he said.

He also praised President Bola Tinubu for supporting local refineries through crude oil supply agreements and urged unions to negotiate rather than protest.

“I urge NUPENG and the Direct Trucking Company Drivers Association to negotiate a deal with Dangote rather than embarking on any industrial action,” Karimi said.

Industry experts say Nigeria now faces a critical choice. If stakeholders work together, the country could enjoy cheaper fuel, more jobs, and stronger foreign reserves. But if disputes continue, the refining revolution may stall before it delivers its full benefits.


Tags: CORANDisputesEconomyHurtNigeriaRefinery

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