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Oil marketers, represented by the Petroleum Products Retail Outlets Owners Association of Nigeria, have called on the Federal Government to adopt sweeping reforms in the downstream petroleum sector. They urged the privatization of state-owned refineries, which they argue would foster efficiency and attract private investments. The association also emphasized the need for increased competition, robust transparency measures, and infrastructural development to enhance the sector’s overall functionality and address long-standing operational inefficiencies.
Highlighting the inefficiencies in government-operated facilities, the Petroleum Products Retail Outlets Owners Association of Nigeria has called for the immediate privatization of the Warri and Kaduna refineries, which together have a production capacity of 125,000 barrels per day. The group contends that such a move would stimulate investment, improve performance, and address the persistent challenges plaguing Nigeria’s downstream petroleum industry.
The association further emphasized the need for the Federal Government to implement stronger policies on local content development, aiming to boost local employment and technical expertise in the petroleum sector. They also advocated for significant progress toward the operational efficiency of Compressed Natural Gas (CNG) by 2025, highlighting its potential to reduce dependence on traditional fuels.
Additionally, the marketers demanded a more aggressive stance against the smuggling of petroleum products, which they say continues to harm both the economy and legitimate market participants.
In addition to their reform proposals, the traders appealed to the government to prioritize measures that would secure local traders’ access to crude oil supplies, ensuring stable and efficient operations.
They also proposed the creation of a ₦100 billion grant to assist roughly 10,000 businesses that have suffered financial hardship following the elimination of fuel subsidies, a move they argue is crucial to safeguarding jobs and restoring economic balance.
PETROAN made the demand in its 2024 retrospect and outlook for 2025 document released on Saturday in Abuja. The report was signed by its National President, Dr Billy Gillis-Harry, National Secretary, Barr Adedibu Aderibigbe, and National Public Relations Officer, Dr Joseph Obele.
PETROAN listed its recommendations to consolidate gains in the downstream sector, stressing that privatisation will improve efficiency and limit government spending.
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The document read, “Based on PETROAN’s observations, the following recommendations are made to ensure the effectiveness and efficiency of the downstream sector in 2025:
“Privatisation of Nigerian-Owned Refineries: To improve efficiency and reduce government spending, Nigerian-owned refineries, such as the Warri and Kaduna refineries, should be privatised to reputable private companies.
“Foster a competitive market by encouraging new entrants and promoting a level playing field to prevent monopolies and ensure fair pricing.
“Establish a robust monitoring and evaluation framework to track the performance of downstream operators and ensure compliance with regulatory requirements.
“Continue to invest in critical infrastructure and preventive maintenance, such as refineries, pipelines, and storage facilities, to improve the country’s refining capacity and reduce reliance on imported petroleum products.
“Encourage the development of local content by supporting indigenous companies and providing incentives for research and development in the downstream sector.
“Private sector participation should be encouraged to increase access to funding and expertise. 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.
“Collaborate with neighbouring countries to strengthen border security and prevent smuggling, and also utilise digital tracking systems to monitor petroleum products from refineries to retail outlets.”
The document added that, “To boost Nigeria’s refining capacity and reduce reliance on imported petroleum products, we strongly recommend that crude oil be made available for local refineries.
“This strategic move will positively impact the country’s economy and energy security. By prioritising local refineries’ access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security.
“PETROAN requests a grant of N100bn from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses. The request is in response to the threat of job losses that would result from the removal of the fuel subsidy.”
