The Crude Oil Refineries Association of Nigeria has said modular refineries could meet more than 10 per cent of Nigeria’s diesel demand but cited limited access to feedstock as a major constraint.
CORAN’s Publicity Secretary, Eche Idoko, stated this in an interview while reacting to a report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, according to The Punch.
The report showed that modular refineries accounted for about two per cent of the country’s diesel consumption over a three-month period.
Idoko, however, expressed caution in fully accepting the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s figures, noting that modular refineries face significant limitations due to insufficient crude supply.
“Any percentage at this moment is very, very important. When they said two per cent, I would contend with that figure. Our capacity is more than two per cent. We have the capacity to produce up to 10 per cent of our current diesel need, or 15 per cent, if we have enough crude supply. As I mentioned, refineries like OPAC are not even operating near their capacity yet. The reason the percentage is so low is the lack of crude feedstock,” he stated.
Idoko said the association has consistently petitioned for modular refineries to benefit from the naira-for-crude scheme, but their appeals have not been granted.
He noted, “We have argued; we have contended that the naira-for-crude deal be extended to modular refineries. Up until now, nothing has been done. Let modular refineries enjoy the incentives that come with the naira-for-crude policy.
“We want to use this opportunity to advocate for the government to expand the naira-for-crude deal to modular refineries as well. The likes of OPAC, Aradel, Waltersmith, and the Edo Refinery need it to help increase their production, and this would help make diesel more available. It is our contention that diesel is actually a more important fuel and that it essentially powers the industrial and agricultural sectors in Nigeria.”
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s monthly fact sheets show that Nigeria’s modular refineries met an average of 2.37 per cent of the nation’s diesel demand between November 2025 and January 2026.
The records indicate that only three modular refineries—Waltersmith Refinery, Edo Refinery, and Aradel—were operational during this period, while OPAC and Duport remained inactive.
The three modular refineries collectively supplied an average of about 393,000 litres of Automotive Gas Oil per day over the period, with monthly outputs of 489,000 litres in November 2025, 392,000 litres in December, and 297,000 litres in January 2026.
This contribution was modest compared with national diesel consumption, which averaged roughly 17.0 million litres per day, based on actual truck-out volumes. Monthly consumption figures were 15.4 million litres in November, 16.4 million litres in December, and 19.2 million litres in January.
Based on these numbers, modular refineries accounted for about 3.18 per cent of diesel demand in November, 2.39 per cent in December, and 1.55 per cent in January, averaging 2.37 per cent over the three months.
In contrast, larger refineries—particularly the Dangote Refinery, which produced substantially higher volumes of diesel and other petroleum products—along with ongoing import dependence, continue to dominate the market.
The Dangote refinery supplied 5.6 million litres per day in November, 5.8 million litres per day in December, and 10.9 million litres per day in January 2026.
