By Mohammed Bello Doka
In a bold call to action, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the federal government to privatize the nation’s state-owned refineries, particularly the Warri and Kaduna refineries. According to the association, privatization would bring much-needed efficiency and reduce the financial burden these facilities currently place on government resources.
PETROAN President, Dr. Billy Gillis-Harry, made this appeal during a press conference in Abuja, stressing that privatization is the most sustainable path forward for the oil and gas sector. He argued that well-managed private entities could significantly enhance refinery operations, ensuring consistent availability of petroleum products while reducing dependence on imports.
Adding to the urgency, Dr. Gillis-Harry revealed that approximately 10,000 oil marketers are at risk of business closure following the removal of the fuel subsidy earlier in 2024. To mitigate this crisis, PETROAN has requested a ₦100 billion intervention grant from President Bola Ahmed Tinubu's administration. The grant, the association says, will provide critical relief to struggling businesses and maintain stability in the downstream petroleum sector.
These recommendations come against the backdrop of the federal government’s broader energy sector reforms. Notably, the Warri Refinery recently resumed operations after undergoing extensive rehabilitation, signaling progress in efforts to revitalize the nation’s refining capacity. However, PETROAN insists that privatization will provide a more enduring solution, allowing the government to redirect its resources to other critical sectors of the economy.
Critics of the current refinery management structure argue that years of inefficiency, corruption, and inadequate maintenance have hampered productivity, leaving the nation heavily reliant on imported petroleum products. By handing over operations to credible private investors, PETROAN believes that Nigeria could emulate the success of other nations where privatized refineries have achieved global standards of efficiency and profitability.
The association also lauded President Tinubu's administration for its commitment to economic reforms but emphasized that immediate intervention is necessary to safeguard the livelihoods of small and medium-scale marketers. "We are optimistic that the government will consider our appeal, as the success of this sector directly impacts the lives of millions of Nigerians," Dr. Gillis-Harry stated.
As Nigeria navigates a critical juncture in its economic history, the privatization of refineries might just be the transformative step needed to stabilize the petroleum sector and drive economic growth. The question now is whether the government will heed this call and take decisive action to implement long-term reforms.
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