PETROAN Advocate for Privatisation of Kaduna, Warri Refineries

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to privatise the Warri and Kaduna refineries to improve efficiency, foster competition, and reduce government expenditure.

With a combined capacity of 125,000 barrels per day, the association believes privatisation will revitalize Nigeria’s downstream petroleum sector and reduce reliance on imported products.

Key Recommendations

1. Privatisation of Refineries:
PETROAN emphasized that transferring state-owned refineries to private hands would create a competitive market, attract investments, and ensure fair pricing.

2. Infrastructure Development:
The government was urged to invest in pipelines, storage facilities, and other critical infrastructure to enhance the sector’s efficiency.

3. Combat Smuggling and Improve Monitoring:
PETROAN called for digital tracking systems and collaboration with neighboring countries to prevent smuggling and ensure better regulation.

4. Support for Local Refineries:
Improving access to crude oil for local refineries was identified as crucial to boosting refining capacity and ensuring energy security.

5. Compressed Natural Gas (CNG) Development:
The association advocated for greater adoption of CNG, citing its potential to reduce dependency on traditional fuels.

6. Financial Grants for Businesses:
PETROAN proposed a ₦100 billion grant to support 10,000 businesses impacted by the removal of the fuel subsidy.

2024 Achievements and Challenges

The group acknowledged significant progress in 2024, including the deregulation of the petroleum sector, ongoing rehabilitation of the Port Harcourt refinery, and the operational launch of the Dangote Refinery. However, challenges like vandalism, inadequate CNG infrastructure, and inefficient distribution networks remain.

PETROAN believes that privatisation, enhanced local content development, and robust stakeholder engagement will address key challenges in the petroleum sector. These measures, if implemented, could ensure sustainability and economic growth in 2025 and beyond.

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