The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the federal government to privatize the Warri and Kaduna refineries to enhance competition, transparency, and accountability in the downstream petroleum sector.
In a statement released on Saturday, PETROAN emphasized that privatizing these government-owned refineries would improve operational efficiency and reduce government expenditure.
“Privatize Nigerian-owned refineries, such as the Warri and Kaduna refineries, to reputable private companies to improve efficiency and reduce government spending,” the association stated.
They also advocated for a competitive market structure that would encourage new players, prevent monopolies, and ensure fair pricing for petroleum products.
N100 Billion Grant for Marketers
PETROAN further urged President Bola Tinubu to approve a N100 billion grant for oil marketers to address potential job losses caused by the removal of petrol subsidies.
“PETROAN requests a grant of N100 billion from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses,” the statement read. “This request responds to the threat of job losses resulting from the removal of the fuel subsidy.”
The association expressed confidence that these measures would consolidate recent gains in the downstream sector while fostering growth and development.
Sector Review and Future Outlook
Reflecting on the developments of 2024, PETROAN noted significant progress in the oil and gas downstream sector, citing deregulation, infrastructure investments, and growth in the Liquefied Petroleum Gas (LPG) market as key milestones.
“The rehabilitation and commencement of production at the Port Harcourt Refinery, as well as the emergence of the Dangote Refinery, were notable highlights of 2024,” the association remarked.
While acknowledging persistent challenges, PETROAN expressed optimism about the sector’s future, urging stakeholders to embrace innovation and sustainability amid global energy transitions.
Investment in CNG Infrastructure
PETROAN also called on the government to prioritize investment in Compressed Natural Gas (CNG) infrastructure in 2025 to improve its adoption and effectiveness.
“Private sector participation should be encouraged to increase access to funding and expertise,” the statement continued. “Regulatory frameworks should be reviewed to reduce operational costs and attract investment, while stakeholder engagement and awareness campaigns should be intensified to promote CNG adoption.”
Prioritizing Local Refineries
The association emphasized the need for the federal government to prioritize local refineries for crude oil supply, highlighting the economic and energy security benefits of such a move.
“This strategic approach will boost Nigeria’s refining capacity, reduce reliance on imported petroleum products, and unlock the full potential of the country’s refining sector,” PETROAN added.
Warri Refinery Resumes Partial Operations
Meanwhile, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, recently announced that the Warri Refining & Petrochemicals Company (WRPC) in Delta State is now operational.
Although the refinery is not yet fully completed, it currently produces 125,000 barrels per day, signaling progress in Nigeria’s efforts to revitalize its refining capacity.