The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the federal government to privatize the Warri and Kaduna refineries in a bid to improve efficiency, foster competition, and enhance accountability in Nigeria’s downstream petroleum sector.
1. Privatization of Refineries
PETROAN advocates for the sale of Warri and Kaduna refineries to reputable private companies. The association believes that privatization will:
- Improve efficiency in refinery operations.
- Reduce government spending on the maintenance and operation of the refineries.
- Promote a competitive market, preventing monopolies and ensuring fair pricing across the sector.
2. Financial Support for Marketers
In response to the challenges posed by the removal of the fuel subsidy, PETROAN has requested a N100 billion grant from President Bola Tinubu to help marketers mitigate the impact of job losses. This grant would be aimed at:
- Preventing the closure of 10,000 marketers’ businesses.
- Supporting businesses and jobs affected by subsidy removal.
3. Focus on Local Refineries
PETROAN has also urged the government to prioritize local refineries, such as those in Warri and Kaduna, for crude oil supply. This would:
- Boost Nigeria’s refining capacity.
- Reduce the nation’s dependence on imported petroleum products.
- Enhance energy security and drive economic growth.
Despite challenges faced in 2023, PETROAN highlighted the growth potential of Nigeria’s downstream sector in 2024. Key developments include:
- Rehabilitation of the Port Harcourt Refinery and the launch of the Dangote Refinery.
- Continued deregulation of the sector and infrastructure investments.
- Growth in the LPG market.
The Energy Transition and Technological Advancements
PETROAN emphasized the importance of adaptability, innovation, and sustainable development as Nigeria’s oil and gas sector navigates the energy transition and embraces new technologies.
Future Outlook for Compressed Natural Gas (CNG)
PETROAN has called for greater investment in CNG infrastructure in 2025 to increase the effectiveness of CNG as an alternative energy source. Key recommendations include:
- Encouraging private sector participation to access funding and expertise.
- Reviewing regulatory frameworks to reduce operational costs and attract investment.
- Intensifying stakeholder engagement and awareness campaigns to promote CNG adoption.
Recent Developments at Warri Refinery
The Warri Refining & Petrochemicals Company (WRPC) in Delta State is now operational, with an output of 125,000 barrels per day. While the refinery is not yet fully completed, this marks a significant step toward revitalizing Nigeria’s refining capacity.
PETROAN’s recommendations are aimed at creating a more efficient, competitive, and sustainable downstream sector in Nigeria. By privatizing refineries, supporting marketers, and prioritizing local refineries for crude oil supply, the association believes Nigeria can significantly improve its energy security and economic growth. The focus on CNG and technological innovation will also play a pivotal role in shaping the future of the country’s energy landscape.
