Oil marketers under the auspices of the Petroleum Products Retail Outlets Owners Association of Nigerian (PETROAN) have charged the federal government to privatize government-owned refineries to encourage competition, enhance transparency and accountability.
The marketers specifically asked for the privatization of the 125, 000 barrels per day Warri and Kaduna refineries, asking the federal government to instead invest in infrastructure that will improve the operations in the downstream sector of the petroleum industry.
Also, the association charged the federal government to enforce local content development and enhance the effectiveness of compressed natural gas in 2025, and tackle petrole6m products smuggling.
PETROAN further asked the federal government to prioritize access to crude oil and provide an N100 billion grant to rescue 10, 000 businesses affected by subsidy removal.
The body 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, Adedibu Aderibigbe and National Public Relations Officer, Dr. Joseph Obele.
It asserted that these recommendations will enable the federal government consolidate gains in the downstream sector, stressing that privatisation will improve efficiency and limit government spending.
The document reads: “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.
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“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 neighboring countries to strengthen border security and prevent smuggling, and also utilize digital tracking systems to monitor petroleum products from refineries to retail outlets.”
The association added that to boost Nigeria’s refining capacity and reduce reliance on imported petroleum products, crude oil be made available to local refineries.
“This strategic move will positively impact the country’s economy and energy security. By prioritizing local refineries’ access to crude oil, Nigeria can unlock the full potentials of its refining sector, drive economic growth and enhance energy security.
“PETROAN requests a grant of N100 billion 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,” it said.
