The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which represents Nigerian oil marketers, has pushed the Federal Government to privatise state-owned refineries, particularly the Warri and Kaduna refineries, which together can produce 125,000 barrels per day.
They contend that privatisation would increase efficiency, lower government spending, and promote competition in the downstream petroleum industry.
In addition to privatisation, PETROAN suggests that the government invest in expanding Compressed Natural Gas (CNG) infrastructure to encourage its use as an alternative fuel.
This project aims to give Nigerians access to cleaner energy sources and lower transportation expenses.
By aiding domestic businesses and offering incentives for downstream research and development, the group also advocates for the enforcement of local content development. To increase the nation’s capacity for refining and lessen its dependency on imported petroleum products, they stress the necessity of ongoing investments in vital infrastructure, such as pipelines and storage facilities.
Furthermore, PETROAN recommends that the government give local refineries access to crude oil top priority and consider offering assistance to companies impacted by recent policy changes, including eliminating gasoline subsidies.
These suggestions are a component of PETROAN’s overarching plan to improve the downstream petroleum industry in Nigeria’s efficacy and efficiency by 2025.
According to the group, putting these policies into place will make the nation’s energy industry more self-sufficient and sustainable.
