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Privatize Refineries, Invest In CNG – Oil Marketers Tell FG

Published

2 days ago

Jan 5, 2025.

Oil marketers urge FG to privatise refineries for better efficiency.
They call for investments in CNG and critical petroleum infrastructure.
A N100bn grant is requested to support businesses post-subsidy removal.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to privatise state-owned refineries, including the 125,000 barrels per day Warri and Kaduna refineries, to enhance efficiency, reduce government expenditure, and promote competition in the downstream petroleum sector.

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EKO HOT BLOG reports that in a document titled “2024 Retrospect and Outlook for 2025,” released on Saturday in Abuja, PETROAN outlined several recommendations to strengthen the sector.

The document, signed by its National President, Dr. Billy Gillis-Harry, National Secretary, Barr. Adedibu Aderibigbe, and National Public Relations Officer, Dr. Joseph Obele, emphasized the need for structural reforms.

The association called for investments in critical infrastructure, such as pipelines, refineries, and storage facilities, to boost local refining capacity and minimize reliance on imported petroleum products.

PETROAN also advocated for enforcing local content development, promoting the adoption of Compressed Natural Gas (CNG) in 2025, and addressing petroleum product smuggling through improved border security and digital tracking systems.

The report recommended fostering a competitive market by encouraging private-sector participation, supporting indigenous companies, and reviewing regulatory frameworks to lower operational costs.

PETROAN also proposed a robust monitoring system to ensure compliance and efficiency in the sector.

Additionally, the association urged the government to make crude oil readily available for local refineries, a move it believes would boost the economy and enhance energy security.

To mitigate the impact of subsidy removal, PETROAN requested a N100 billion grant from President Bola Tinubu to support 10,000 marketers at risk of business closure and job losses.

Privatize Refineries Oil Marketers

“Privatisation of government-owned refineries and strategic investment in the downstream sector will drive economic growth, secure energy supply, and prevent monopolies,” PETROAN stated.

It emphasized the need for a transparent and competitive market to ensure fair pricing and sustainability in Nigeria’s petroleum industry.