The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Nigerian government to privatise the Warri and Kaduna refineries, emphasising that private ownership would enhance efficiency and reduce government expenditure.
This recommendation was contained in a statement released on Saturday titled ‘Retrospect of Nigeria’s Oil and Gas Downstream Sector in 2024’, signed by PETROAN’s National President, Billy Gillis-Harry; Secretary, Adedibu Aderibegbe; and spokesperson, Joseph Obele.
The marketers argued that the 125,000 barrels-per-day Warri Refinery and the 110,000 barrels-per-day Kaduna Refinery should be sold to reputable private firms to guarantee a more efficient downstream sector in 2025.
The statement reads, “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_: Privatise Nigerian-owned refineries, such as the Warri and Kaduna refineries, to reputable private companies to improve efficiency and reduce government spending.
“Meanwhile, PETROAN calls on Bola Ahmed Tinubu’s administration to consider its request for N100 billion in intervention funds to prevent filling stations from shutting down over the harsh economic realities.
“PETROAN request for a grant of N100 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.”
The association warned of potential job losses affecting over 10,000 marketers if their businesses are forced to shut down due to current economic challenges.
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The call for privatisation comes as the Nigerian National Petroleum Company Limited (NNPCL) announced the resumption of operations at the Warri Refinery following its rehabilitation. Additionally, NNPCL stated that the Kaduna Refinery, along with the Port Harcourt plant, is undergoing a comprehensive overhaul.
The privatisation debate also revives claims by former President Olusegun Obasanjo that NNPCL rejected Aliko Dangote’s 2007 offer to manage the Port Harcourt and Kaduna refineries. However, Senior Advocate of Nigeria, Femi Falana, revealed that the sale of the refineries was cancelled due to procedural irregularities under Obasanjo’s administration.
NNPCL had earlier disclosed plans to transfer the Warri and Kaduna refineries to private firms, with further developments expected in the sector.
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