The Petroluem Products Retail Outlets Owners Association of Nigeria (PETROAN) has asked the Federal Government to privatise state-owned refineries, requesting a ₦100bn grant from President Bola Tinubu to help oil marketers stay afloat.
In a statement released on Saturday titled PETROAN's Review of Nigeria's Oil and Gas Downstream Sector for 2024, the association highlighted several significant developments in the sector over the past year.
However, it suggested that the government privatize "locally-owned refineries, such as the Warri and Kaduna facilities, by handing them over to reputable private firms to enhance operational efficiency and cut down on public sector expenditure."
In the statement, signed by President Billy Gillis-Harry, National Secretary Adedibu Aderibigbe, and Spokesman Joseph Obele, PETROAN also appealed for a grant request to prevent the closure of oil marketers' businesses. The request aims to “help avert the shutdown of 10,000 marketing businesses, responding to the job loss threat posed by the abolition of the fuel subsidy.”
"Unlock the Full Potential"
A queue forms at an NNPC (Nigerian National Petroleum Corporation) fuel station in Lagos on September 4, 2024. (Photo by FAWAZ OYEDEJI / AFP)
The association urged authorities to collaborate with "neighboring nations to reinforce border security and curb smuggling. It also recommended using digital tracking systems to trace petroleum products from refineries to retail outlets."
To enhance Nigeria’s refining capacity and reduce dependence on imported petroleum products, PETROAN strongly advocated for local refineries to have access to crude oil.
"This strategic step will benefit the country’s economy and energy security. By prioritizing local refineries' access to crude, Nigeria can tap into the full potential of its refining industry, spur economic growth, and improve energy security," the statement noted.
Since the fuel subsidy was lifted in May 2023, the price of fuel has surged from about ₦170 to approximately ₦1,000 in many parts of the country.
PETROAN also called for the creation of "a competitive market by welcoming new entrants and fostering a fair marketplace to avoid monopolies and ensure reasonable pricing."