Oil Marketers Give Reasons Why they Asked the FG to Privatize Refinaries in Nigeria

Oil marketers in Nigeria, under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have urged the Federal Government to prioritize the privatization of the country's refineries to improve efficiency, transparency, and competitiveness within the downstream petroleum sector. The association emphasized that government-owned refineries, including the Warri and Kaduna refineries, should be privatized to reputable private entities to drive better performance and reduce the financial burden on public resources. PETROAN stated that privatization would foster a more competitive market by encouraging new players and eliminating monopolistic tendencies, which would help ensure fair pricing and increased efficiency in petroleum product distribution.

In a document highlighting its 2024 review and projections for 2025, signed by National President Dr. Billy Gillis-Harry, National Secretary Barrister Adedibu Aderibigbe, and National Public Relations Officer Dr. Joseph Obele, PETROAN called on the government to enact policies that would enhance private sector participation in the downstream sector. They recommended establishing a robust monitoring framework to track operator performance and ensure regulatory compliance. According to PETROAN, sustained investment in key infrastructure, including pipelines, refineries, and storage facilities, would significantly reduce Nigeria's reliance on imported petroleum products, thus bolstering national refining capacity.

PETROAN further highlighted the importance of local content development, urging the government to incentivize indigenous businesses and support research and development initiatives in the petroleum industry. The group advocated for regulatory reforms to lower operational costs and attract more investment into the sector, noting that collaboration between public and private entities would increase access to funding and technical expertise. It also emphasized the need for awareness campaigns to boost the adoption of Compressed Natural Gas (CNG) as an alternative fuel, providing an environmentally friendly and cost-effective solution for consumers.

Additionally, PETROAN stressed the need for stronger measures to combat the smuggling of petroleum products across Nigeria’s borders. The association proposed the use of digital tracking systems to monitor the movement of products from refineries to retail outlets, reducing losses and ensuring more efficient distribution. Collaborative efforts with neighboring countries were also suggested to enhance border security and curb illicit trade.

A key recommendation from PETROAN was ensuring a steady supply of crude oil to local refineries. By prioritizing access to crude oil for domestic refining, the association argued that Nigeria could fully realize the economic potential of its petroleum industry, driving job creation, improving energy security, and reducing foreign exchange expenditures on fuel imports. This strategic approach would help stabilize the domestic market and enhance the sustainability of the refining sector.

To mitigate the impact of fuel subsidy removal on petroleum marketers, PETROAN requested a N100 billion grant from President Bola Tinubu’s administration. The association warned that without financial support, up to 10,000 businesses could face closure, leading to significant job losses. This plea underscores the need for government intervention to cushion the economic impact on operators and maintain stability within the petroleum retail market.