The Petroleum Products Retail Outlets Owners Association of Nigeria, (PETROAN) has urged the Federal Government to privatize government-owned refineries such as the Warri and Kaduna refineries, to reputable private companies to improve efficiency and reduce government spending.
It also said it was important for the FG to enhance transparency and accountability and invest in infrastructure to enhance operations in the downstream sector of the petroleum industry.
In its 2024 retrospect and outlook for 2025 document released on Saturday in Abuja, the association also advised FG to prioritise access to crude oil and the provision of an N100bn grant to rescue 10,000 businesses occasioned by subsidy removal.
The report was signed by its National President, Billy Gillis-Harry, National Secretary, Adedibu Aderibigbe and National Public Relations Officer, Dr Joseph Obele.
According to the report, FG should enforce local content development, enhance the effectiveness of Compressed Natural Gas, (CNG) in 2025, and tackle the smuggling of petroleum products.
The document read, “Based on PETROAN’s observations, the following recommendations are made to ensure the effectiveness and efficiency of the downstream sector in 2025: Privatisation of Nigerian-Owned Refineries.
“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.”
It added: “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 N100bn 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.”
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