The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has renewed pressure on the Federal Government to privatise Nigeria’s four state-owned refineries, warning that continued public ownership is deepening fiscal waste and delaying downstream sector stability.
The association urged the government to transparently conclude the privatisation process by the first quarter of 2026, arguing that Nigeria can no longer afford repeated rehabilitation spending without commensurate output from the refineries operated by the Nigerian National Petroleum Company Limited (NNPCL).
Why PETROAN wants private-sector control
He stressed that a competitive, privately run refining system would reduce Nigeria’s dependence on imported petroleum products, conserve foreign exchange, and stabilise fuel supply across the downstream value chain. PETROAN also noted that refinery reform would complement ongoing upstream investments and strengthen Nigeria’s overall energy outlook.
Budget assumptions and sector reforms
PETROAN said years of sustained public funding have failed to deliver efficient or commercially viable refineries, making private-sector-led management inevitable. According to the association’s National President, Billy Gillis-Harry, privatisation would unlock operational efficiency, attract fresh capital, and introduce modern technical expertise aligned with global refining standards.
The association tied its call to the 2026 Budget framework, which targets crude oil production of 1.84 million barrels per day and sets an oil price benchmark of $64–65 per barrel. PETROAN said these assumptions provide a solid base for decisive reforms, including refinery privatisation.
It adde that improved security for oil and gas infrastructure, effective host community engagement under the Petroleum Industry Act, and well-funded regulators would further boost investor confidence. According to the group, privatisation would free government resources for critical priorities such as security and infrastructure, while allowing the private sector to drive efficiency and innovation in refining and petrochemicals.
Costly shutdowns fuel privatisation debate
Calls for privatisation have intensified following repeated refinery shutdowns. The 60,000-barrel-per-day Port Harcourt refinery was shut in May, barely six months after it was declared operational, while the Warri refinery reportedly closed one month after its reopening in December 2024.
Despite heavy spending $1.4bn approved for Port Harcourt rehabilitation, $897m for Warri, and $586m for Kaduna the refineries remain largely unproductive. Industry groups, including the Manufacturers Association of Nigeria, have described the plants as a drain on the economy.
While the new NNPCL Group Chief Executive Officer, Bayo Ojulari, has rejected outright sale calls, insisting the refineries can still be revived, PETROAN maintained that privatisation remains central to achieving a stable downstream sector. The association said decisive action now would help Nigeria maximise the benefits of its oil and gas resources and finally end decades of refinery underperformance.
