Marketers Urge FG to Make Crude Oil Available to Local Refineries, Privatise Kaduna, Warri Refineries

*Demand N100bn grant to avert closure of 10,000 businesses

Peter Uzoho

The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has recommended among others, the privatisation of state-owned Warri and Kaduna refineries to reputable private companies to improve efficiency and reduce government spending.

This is just as the marketers have called on the federal government to make crude oil available to the local refineries.
PETROAN has requested for a grant of N100 billion from President Bola Tinubu to help prevent the looming closure of 10,000 marketers’ businesses.

The association made the requests in its review of Nigeria’s oil and gas downstream sector for 2024, dated January 4, 2025, which was jointly signed by its National President, Dr Billy Grillis-Harry; National Secretary, Adedibu Aderibigbe; and the National Public Relations Officer, Dr Joseph Obele.

“PETROAN requested for 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”, the association said.

In its review of the activities of the downstream sector in the past year, PETROAN noted that the decision of the federal government to remove subsidies on petroleum products led to a more market-driven pricing regime.
“The Nigerian government’s decision to remove subsidies on petroleum products led to a more market-driven pricing regime. Although this move was met with initial resistance, it ultimately resulted in price stability and reduced the burden on the government’s finances,” the association stated.

According to PETROAN, the successful rehabilitation and commencement of production at the Port Harcourt Refinery marked a significant step towards increasing Nigeria’s refining capacity and reducing dependence on imported petroleum products.

The association noted that the Dangote Refinery’s entry into the market introduced a new dynamic, particularly in terms of pricing competition, adding that the refinery’s prices were initially competitive, putting pressure on the NNPCL’s to review its pricing strategy.
This competition, the association noted, ultimately benefited consumers, who enjoyed relatively stable and lower prices for petroleum products.

Also, in the year under review, PETROAN raised the concerns around the difficulty in converting existing vehicles to run on Compressed Natural Gas (CNG); limited availability of CNG-compatible vehicles and high initial investment costs for establishing CNG stations and infrastructure.

However, to ensure the effectiveness and efficiency of the downstream sector in 2025, PETROAN recommended among others, the privatisation of state-owned Warri and Kaduna refineries to reputable private companies to improve efficiency and reduce government spending.

PETROAN equally advocated the enforcement of development of local content by supporting indigenous companies and providing incentives for research and development in the downstream sector.
To enhance the effectiveness of CNG in 2025, the association urged the government to invest in expanding CNG infrastructure
It recommended that stakeholder engagement and awareness campaigns should be intensified to promote the adoption of CNG.

To address cross-border smuggling of petroleum products, PETROAN recommended that Nigeria should collaborate with neighbouring countries to strengthen border security and prevent smuggling, and also utilise 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, PETROAN recommended that crude oil be made available for local refineries.
By prioritising local refineries’ access to crude oil, the marketers noted that Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security.