Why You Should Privatize Refineries In Nigeria – PETROAN Tells President Tinubu

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has suggested the administration of President Bola Tinubu should privatize government-owned refineries in the country.

The oil marketers said handing over the government-owned refineries to private companies for management would enhance the efficiency of the outfits and reduce government spending.

PETROAN gave the advice in a statement on Saturday, titled PETROAN’S Retrospect of Nigeria’s Oil and Gas Downstream Sector 2024, which was signed by its President, Billy Gillis-Harry, National Secretary, Adedibu Aderibigbe, and spokesman, Joseph Obele.

The association also requested a ₦100bn grant from President Tinubu to help oil marketers stay afloat and avoid the close down of businesses.

The marketers in their statement, recommended the privatisation of “Nigerian-owned refineries, such as the Warri and Kaduna refineries, to reputable private companies to improve efficiency and reduce government spending.”

PETROAN said the move is “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.

The association called on authorities in Nigeria to make crude oil available to local refineries in the country by working with “neighbouring countries to strengthen border security and prevent smuggling, and also utilize digital tracking systems to monitor petroleum products from refineries to retail outlets.

“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 have a positive impact on the country’s economy and energy security. By prioritizing local refineries’ access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security,” the statement read.

The Association of Oil Marketers added that its recommendations would produce a competitive market by encouraging new entrants and promoting a level playing field to prevent monopolies and ensure fair pricing.