Oil marketers, represented by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have called on the Federal Government to prioritize privatization of state-owned refineries, enhance competition, and promote transparency within the petroleum sector.
In a comprehensive 2024 review and 2025 outlook released in Abuja, the association urged the government to sell the Warri and Kaduna refineries, which have a combined capacity of 125,000 barrels per day, to reputable private companies. This, they believe, will improve efficiency and reduce public spending.
PETROAN’s leadership emphasized the importance of creating a competitive market by encouraging new entrants and ensuring fair pricing, while also calling for the establishment of a monitoring framework to ensure compliance and proper performance of downstream operators.
The association further underscored the need for continued investment in critical infrastructure, including refineries, pipelines, and storage facilities, to boost the country's refining capacity and reduce dependency on imported petroleum products.
In addition, the marketers urged the government to promote local content development, particularly by supporting indigenous companies and incentivizing research and development within the sector.
They also advocated for the effective implementation of Compressed Natural Gas (CNG) by 2025 and asked for stronger measures to combat the smuggling of petroleum products.
One of the key recommendations from PETROAN was to ensure that local refineries have guaranteed access to crude oil, a move they believe would drive economic growth and enhance Nigeria’s energy security.
The association also requested a N100bn grant from President Bola Tinubu to support 10,000 businesses that could be negatively impacted by the removal of fuel subsidies.
While the marketers acknowledged the progress made in 2024, including the deregulation of the sector, the rehabilitation of the Port Harcourt refinery, and the launch of operations at the Dangote Refinery, they pointed out several challenges.
These included infrastructure deficits, high operating costs, and the need for a broader network of CNG stations and distribution systems. Despite the challenges, PETROAN noted that the entry of Dangote Refinery into the market had already helped stabilize fuel prices, benefiting consumers and prompting a pricing review by the Nigerian National Petroleum Corporation (NNPC) Limited.
As Nigeria seeks to bolster its downstream sector in the coming year, PETROAN’s proposals aim to lay the groundwork for more efficient, transparent, and sustainable petroleum operations.