Crude Oil Refinery Owners Association of Nigeria has projected that importers of petroleum products in Nigeria may soon go out of business if they refuse to follow local refining trends.
CORAN stated this as the Federal Government ordered the return of the naira-for-crude deal despite calls for its cancellation by the Depot and Petroleum Products Marketers Association of Nigeria.
In an interview with our correspondent, the Publicity Secretary of CORAN, Eche Idoko, dismissed the claims by DAPPMAN that the sale of crude to local refineries in naira affected the economy negatively.
According to Idoko, the depot owners, who are primarily importers of petroleum products, made the claims because they would not want to go out of business.
He argued that those who own depots to store imported products will not want the refineries and the pipelines to function as their functionality would send them out of business.
“We understand why they (the importers) wanted the Federal Government to cancel the naira-for-crude deal. For them, they would not want to go out of the market. And I keep telling you, a man who has drums that store water in order to make money, would not want the pipes to run. Because if the pipes start running, his drums go out of business. That’s what tank farm owners do,” Idoko stated.
The CORAN spokesman said appeals were made to the depot owners to re-strategise so as to remain relevant when Nigeria becomes a refining hub.
However, Idoko said the importers remained adamant in the business of fuel importation, saying they would go out of business because refining has come to stay in Nigeria.
“Unfortunately, we are asking them to come so that we can re-strategise and change their business strategy so they can remain relevant when Nigeria becomes a refining hub, but they are not forthcoming.
“Well, as long as they decide to keep to that position, at some point, they will all go out of business. Because refining in Nigeria has come to stay,“ he stressed.
