The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the federal government to privatize the Warri and Kaduna refineries to boost efficiency and cut public spending.
In a statement titled “Retrospect of Nigeria’s Oil and Gas Downstream Sector in 2024” and signed by its National President, Billy Gillis-Harry, alongside other executives, PETROAN emphasized the need for reform in the downstream sector as the country enters 2025.
The association recommended the sale of the Warri Refinery, which has a capacity of 125,000 barrels per day, and the Kaduna Refinery, with a capacity of 110,000 barrels per day, to reputable private investors.
“Privatizing Nigerian-owned refineries such as Warri and Kaduna will improve efficiency and reduce government spending,” the statement read.
PETROAN also appealed to President Bola Ahmed Tinubu’s administration for a ₦100 billion intervention fund to support struggling filling station operators. The request aims to prevent the closure of over 10,000 outlets and safeguard jobs threatened by the removal of the fuel subsidy.
This recommendation follows recent claims by former President Olusegun Obasanjo, who alleged that the Nigerian National Petroleum Company Limited (NNPCL) rejected an offer from Dangote Group in 2007 to manage the Port Harcourt and Kaduna refineries.
Meanwhile, the NNPCL has announced the resumption of operations at the Warri Refinery following rehabilitation efforts. However, PETROAN insists that privatization remains the best option for ensuring sustainable refinery operations and addressing challenges in the oil and gas downstream sector.
The statement underscores the association’s concerns over the harsh economic realities and the need for swift government intervention to stabilize the industry.
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