Oil marketers in Nigeria have charged the Federal Government to privatize government-owned refineries, encourage competition, enhance transparency and accountability and invest in infrastructure to enhance operations in the downstream sector of the petroleum industry.
The marketers also called on the government to enforce Local Content development, enhance the effectiveness of Compressed Natural Gas (CNG) in 2025 and tackle petroleum products smuggling.
The traders, under the auspices of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), further asked the government to priotise access to crude oil and the provision of N100 billion grant to rescue 10,000 businesses occasioned by subsidy removal.
In its retrospect into 2024 and outlook for 2025, released, yesterday, and signed by the National President, Dr. Billy Gillis-Harry, Barr Adedibu Aderibigbe, National Secretary and Dr Joseph Obele, National Public Relations Officer, PETROAN, stated: “Privatize Nigerian-owned refineries, such as the Warri and Kaduna refineries, to reputable private companies to improve efficiency and reduce government spending.
“Foster a competitive market by encouraging new entrants and promoting a level playing field to prevent monopolies and ensure fair pricing.
“Establish a robust monitoring and evaluation framework to track the performance of downstream operators and ensure compliance with regulatory requirements.
“Continue to invest in critical infrastructure and preventive maintenance, such as refineries, pipelines, and storage facilities, to improve the country’s refining capacity and reduce reliance on imported petroleum products.
“Encourage the development of local content by supporting indigenous companies and providing incentives for research and development in the downstream sector.
“Private sector participation should be encouraged to increase access to funding and expertise. Regulatory frameworks should be reviewed to reduce operational costs and attract investment. Stakeholder engagement and awareness campaigns should be intensified to promote the adoption of CNG.
“Collaborate with neighbouring countries to strengthen border security and prevent smuggling, and also utilize 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, we strongly recommend that crude oil be made available for local refineries.
“This strategic move will have a positive impact on the country’s economy and energy security. By prioritizing local refineries’ access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security.
“PETROAN requests a grant of ₦100 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.”
Also, the marketers noted the deregulation of the sector, construction of new infrastructure, rehabilitation of the old Port Harcourt refinery and the commencement of operations by the Dangote Refinery, as major accomplishments in 2024, adding that, “The Dangote Refinery’s prices were initially competitive, putting pressure on the NNPC Limited to review its pricing strategy. This competition ultimately benefited consumers, who enjoyed relatively stable and lower prices for petroleum products.”
However, the marketers urged the government to address vandalism, inadequate infrastructure, including limited Compressed Natural Gas, CNG stations and distribution networks and high operating costs, especially the cost of compressing and transporting natural gas.
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