Oil marketers, under the banner of the Petroleum Products Retail Outlets Owners Association of Nigeria, have urged the Federal Government to privatize state-owned refineries, foster competition, and invest in critical infrastructure to improve the downstream petroleum sector.
Their demands specifically highlighted the need to privatize the 125,000 barrels per day Warri and Kaduna refineries, enhance transparency, enforce local content policies, and strengthen measures against petroleum product smuggling.
PETROAN also advocated for the promotion of Compressed Natural Gas by 2025 and called for a N100bn grant to support 10,000 businesses struggling due to the removal of fuel subsidies.
These proposals were detailed in PETROAN’s 2024 review and 2025 outlook document, issued on Saturday in Abuja.
The report was signed by the National President,,Dr. Billy Gillis-Harry, National Secretary, Barr. Adedibu Aderibigbe and National Public Relations Officer, Dr. Joseph Obele.
The association emphasized the importance of privatization to enhance efficiency and minimize government expenditure.
The document stated, “Based on PETROAN’s observations, the following recommendations are made to ensure the effectiveness and efficiency of the downstream sector in 2025:
“Privatisation of Nigerian-Owned Refineries: To improve efficiency and reduce government spending, Nigerian-owned refineries, such as the Warri and Kaduna refineries, should be privatised to reputable private companies.
“Foster a competitive market by encouraging new entrants and promoting a level playing field to prevent monopolies and ensure fair pricing.
“Establish a robust monitoring and evaluation framework to track the performance of downstream operators and ensure compliance with regulatory requirements.
“Continue to invest in critical infrastructure and preventive maintenance, such as refineries, pipelines, and storage facilities, to improve the country’s refining capacity and reduce reliance on imported petroleum products.
“Encourage the development of local content by supporting indigenous companies and providing incentives for research and development in the downstream sector.
“Private sector participation should be encouraged to increase access to funding and expertise. Regulatory frameworks should be reviewed to reduce operational costs and attract investment. Stakeholder engagement and awareness campaigns should be intensified to promote the adoption of CNG.
“Collaborate with neighbouring countries to strengthen border security and prevent smuggling, and also utilise digital tracking systems to monitor petroleum products from refineries to retail outlets.”
The group further stressed the importance of prioritizing local access to crude oil for refineries to strengthen the country’s energy security and boost economic growth.
“To boost Nigeria’s refining capacity and reduce reliance on imported petroleum products, we strongly recommend that crude oil be made available for local refineries. This strategic move will positively impact the country’s economy and energy security. By prioritising local refineries’ access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security,” the document added.
PETROAN also requested a N100bn grant from President Bola Tinubu to mitigate the threat of job losses following the removal of fuel subsidies.
“The request is in response to the threat of job losses that would result from the removal of the fuel subsidy,” the statement noted.
