The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has renewed its push for the federal government to privatize the country's four government-owned refineries operated by the Nigerian National Petroleum Company Limited (NNPCL), insisting on a transparent completion of the process by the first quarter of 2026.
In a recent statement, PETROAN National President Billy Gillis-Harry criticized decades of substantial public funding poured into the refineries, which have produced minimal commercial results and continue to drain national resources.
He argued that ongoing state control perpetuates inefficiency and blocks advancements in the downstream oil sector.
"Continued government funding of these refineries has not yielded the desired outcomes despite years of investment, making private sector involvement essential for achieving energy security and downstream stability," Gillis-Harry said.
PETROAN highlighted several key advantages of privatization:
- Enhanced efficiency through advanced technology and expertise
- Influx of new private investment
- Lower reliance on imported fuel products
- Preservation of foreign exchange reserves
- More reliable fuel supply and employment opportunities along the supply chain
- Allocation of government funds to vital areas like security and infrastructure
The association emphasized that a transparent and well-managed privatization would bring Nigeria's refining industry up to international standards, promote competition, and support upstream oil and gas developments.
This appeal ties into the proposed 2026 national budget, which projects crude oil production at 1.84 million barrels per day and a benchmark price of around $64–65 per barrel.
PETROAN believes that bold refinery reforms, combined with better security for oil facilities, stronger community engagement under the Petroleum Industry Act (PIA), and proper funding for regulators, could restore investor trust and improve sector performance.
The call comes against a backdrop of persistent challenges in Nigeria's oil industry. NNPCL has historically opposed full privatization, especially for the Port Harcourt refinery, which it vowed to keep and upgrade as late as mid-2025.
However, mounting stakeholder demands reflect frustration over long-term underperformance and financial strain.
PETROAN asserts that privatization is key to maximizing Nigeria's oil and gas potential, breaking the pattern of wasteful spending, and building a more resilient and competitive downstream market in the near future.
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