PETROAN: Oil marketers call FG to privatizes Warri, Kaduna refineries

Oil marketers represented by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have called on the Nigerian government to privatized the Warri and Kaduna refineries to improve their performance and cut public spending.

In a document named Analysis of Nigeria’s Oil and Gas Downstream Sector in 2024 and signed by PETROAN’s leader Billy Gillis-Harry, secretary Adedibu Aderibegbe, and representative Joseph Obele, the association detailed its suggestions for refining the downstream sector.

In PETROAN’s view, divesting the 125,000-barrels-per-day Warri Refinery and the 110,000-barrels-per-day Kaduna Refinery would boost their efficiency and ease the financial strain on the government. The statement pointed out:

"Transfer ownership of refineries like Warri and Kaduna to trustworthy private enterprises to boost operational effectiveness and lower government costs."

As part of its recommendations, PETROAN called on President Bola Ahmed Tinubu’s administration to grant a N100 billion intervention package to help fuel stations navigate economic challenges.

"A N100 billion grant from President Bola Tinubu has been requested by PETROAN to prevent the collapse of 10,000 marketers’ ventures. The assistance is deemed critical to offset the job losses associated with the subsidy withdrawal," the statement asserted.

The advice from PETROAN is linked to former President Olusegun Obasanjo’s claim that the Nigerian National Petroleum Company Limited (NNPCL) rejected Dangote’s bid to manage the Port Harcourt and Kaduna refineries back in 2007.

Additionally, NNPCL recently stated that the Warri Refinery is operational again after completing its repairs.