Petroleum marketers, under the umbrella of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have called on the Nigerian government to privatize the Warri and Kaduna refineries.
PETROAN made this appeal in a statement issued on Saturday, January 4, titled “Retrospect of Nigeria’s Oil and Gas Downstream Sector in 2024.” The statement was signed by the association’s National President, Billy Gillis-Harry; Secretary, Adedibu Aderibegbe; and spokesperson, Joseph Obele.
The marketers argued that the privatization of the 125,000 barrels per day Warri Refinery and the 110,000 barrels per day Kaduna Refinery would enhance their operational efficiency and reduce the financial burden on the government.
“Based on PETROAN’s observations, the following recommendations are made to ensure the effectiveness and efficiency of the downstream sector in 2025:
- Privatization of Nigerian-Owned Refineries: Privatize Nigerian-owned refineries, such as Warri and Kaduna, to reputable private companies to boost efficiency and cut government spending.
Additionally, PETROAN has urged President Bola Ahmed Tinubu’s administration to consider providing N100 billion in intervention funds to prevent the closure of filling stations, which are struggling under the current economic pressures.
“PETROAN’s request for a N100 billion grant from President Bola Tinubu is to help safeguard 10,000 marketers’ businesses and prevent mass job losses due to the fuel subsidy removal,” the statement added.
This request from PETROAN follows a claim by former President Olusegun Obasanjo, who alleged that the Nigerian National Petroleum Company Limited (NNPCL) had rejected Dangote’s offer to manage the Port Harcourt and Kaduna refineries in 2007.
Meanwhile, NNPCL has announced that the Warri Refinery has resumed operations following its rehabilitation.
