Privatise refineries and invest in CNG – Oil marketers tell FG
Oil marketers, under the banner of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have urged the Federal Government to privatize state-owned refineries, foster competition, promote transparency and accountability, and invest in infrastructure to enhance the efficiency of the downstream petroleum sector.
In particular, they recommended the privatization of the Warri and Kaduna refineries, each with a capacity of 125,000 barrels per day.
Additionally, the marketers called on the government to enforce local content development, expand the adoption of Compressed Natural Gas (CNG) by 2025, and address the persistent issue of petroleum product smuggling.
They also appealed for increased access to crude oil for local refineries and a grant of N100 billion to support 10,000 businesses struggling due to the removal of fuel subsidies.
PETROAN’s demands were outlined in its “2024 Retrospect and Outlook for 2025” document, released in Abuja on Saturday.
The report, signed by PETROAN’s National President, Dr. Billy Gillis-Harry, National Secretary, Barrister Adedibu Aderibigbe, and National Public Relations Officer, Dr. Joseph Obele, included detailed recommendations to strengthen the downstream sector.
It emphasized that privatization would enhance efficiency and curb government expenditure.
The document proposed the following measures to improve the downstream sector in 2025:
- Privatization of Nigerian-Owned Refineries: To boost efficiency and reduce government costs, PETROAN suggested privatizing the Warri and Kaduna refineries, transferring them to reputable private entities.
- Encouraging Competition: The association urged the government to promote a competitive market, attract new entrants, and create a level playing field to prevent monopolies and ensure fair pricing.
- Strengthening Monitoring and Evaluation: Establishing a robust system to track the performance of downstream operators and enforce compliance with regulations was recommended.
- Investing in Infrastructure: PETROAN advocated for sustained investment in critical infrastructure, including refineries, pipelines, and storage facilities, to improve local refining capacity and reduce dependency on imports.
- Promoting Local Content: Supporting indigenous companies and incentivizing research and development in the sector were highlighted as key strategies.
- Boosting CNG Adoption: Private-sector participation, regulatory reviews, and public awareness campaigns were suggested to promote the widespread use of CNG.
- Curbing Smuggling: Collaborating with neighboring countries and employing digital tracking systems to monitor the movement of petroleum products were proposed as solutions to tackle smuggling.
The report further emphasized the importance of prioritizing crude oil access for local refineries to reduce reliance on imported petroleum products, drive economic growth, and strengthen energy security.
PETROAN also appealed to President Bola Tinubu for a grant of N100 billion to prevent the collapse of 10,000 businesses at risk due to subsidy removal, warning that such closures could lead to significant job losses.
