The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the federal government to privatise Warri and Kaduna refineries to foster competition.
In a statement on Saturday, the association said the privatisation will also improve transparency, and enhance accountability in the downstream petroleum sector.
“Privatize Nigerian-owned refineries, such as the Warri and Kaduna refineries, to reputable private companies to improve efficiency and reduce government spending,” PETROAN said.
“Foster a competitive market by encouraging new entrants and promoting a level playing field to prevent monopolies and ensure fair pricing.”
The group also urged President Bola Tinubu to approve N100 billion grant to marketers to help with job losses caused by the removal of petrol subsidy.
“PETROAN request for a grant of N100 billion from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses,” the association said.
“The request is in response to the threat of job losses that would result from the removal of the fuel subsidy.”
PETROAN said the recommendations will consolidate gains in the downstream sector.
According to the association, despite the challenges experienced last year, the sector is poised for continued growth and development.
“2024 was a significant year for Nigeria’s oil and gas downstream sector, marked by deregulation, infrastructure investments, and growth in the LPG market,” PETROAN said.
“The rehabilitation and commencement of production at the Port Harcourt Refinery, as well as the emergence of the Dangote Refinery, were notable highlights.
“While challenges persist, the sector is poised for continued growth and development in the years to come.
“As the industry navigates the energy transition and embraces new technologies, it is essential for stakeholders to remain adaptable, innovative, and committed to sustainable development.”
PETROAN advised the federal government to enhance the effectiveness of compressed natural gas (CNG) in 2025, by investing in the expansion of CNG infrastructure.
“Private sector participation should be encouraged to increase access to funding and expertise,” the association said.
“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.”
PETROAN also suggested that the government prioritise local refineries for crude oil supply.
The association said it will boost Nigeria’s refining capacity and reduce reliance on imported petroleum products.
“This strategic move will have a positive impact on the country’s economy and energy security. By prioritizing local refineries’ access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security,” PETROAN added.
On December 30, Mele Kyari, the group chief executive officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, said the Warri Refining & Petrochemicals Company (WRPC) in Delta state, is now operational.
Kyari said the refinery is not fully completed but is producing 125,000 barrels per day.