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Message: [QUOTE="Munyaradzi Mafaro, post: 82193, member: 636"] A refinery group says Nigeria's oil policy needs to pick a side. The Crude Oil Refinery Owners Association issued a statement on the downstream sector. They declared that the era of neutral policy is over for sustainable growth. Nigeria is slowly moving from fuel imports toward local refining. Significant obstacles still remain in this transition. The group contrasted two different business philosophies. Local refiners built expensive, fixed industrial plants inside the country. Importers historically relied on bringing in foreign fuel cargoes. CORAN argues true faith is shown by capital commitment and long-term risk. Refining is a capital-intensive and risky industrial endeavor. Investors face construction delays and crude supply uncertainty. They also deal with foreign exchange volatility and power issues. A built refinery represents immobile capital that cannot be easily moved. It requires operational discipline and community engagement. This makes refining an industrial commitment, not a trading strategy. The import model dominated for decades under subsidy schemes. It became highly profitable through price arbitrage and forex access. Investigations revealed payments for unrealistic fuel consumption volumes. Billions of dollars were lost in a short period. Massive profits from importing did not translate into local refinery investment. Data shows deep entrenchment of the import model. Petrol imports doubled in value recently, according to reports. These are massive foreign exchange outflows for the nation. That money could have circulated within the domestic economy instead. Importation consumed wealth without building national capacity. The group questioned where the import era's fortunes ultimately went. Capital often flowed into real estate or financial assets. Upstream acquisitions sometimes led to crude being sold abroad. Little was reinvested into domestic processing infrastructure. CORAN acknowledges that both groups contribute to the economy. Their policy positions diverge sharply during reform talks. Local refiners want transparent crude supply mechanisms. They advocate for coherent pricing and foreign exchange rules. Importers often push for continued open access to imports. The association called for deliberate policy choices now. They want a guaranteed crude supply to domestic plants through clear rules. Import licensing should serve only as a temporary balancing tool. Foreign exchange policies must not disadvantage local refiners. This is standard industrial policy in serious energy-producing nations. The debate is about what kind of downstream sector Nigeria builds. Reliance on imports brings forex shocks and supply risks. Supporting local refining strengthens energy security and creates jobs. It also deepens industrial capacity for the future. CORAN concluded that refinery companies demonstrated faith through concrete action. They built plants and committed capital inside Nigeria. Policy must now align with this demonstrated long-term commitment. In their view, faith is defined by what gets built and sustained for the national interest. [/QUOTE]

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