The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on President Bola Tinubu to revive Nigeria's government-owned refineries before January 16, 2027. This move aims to increase competition in the downstream market, enhance energy security, generate employment, and potentially reduce petroleum product prices.
In reaction to President Tinubu's Independence Day address, PETROAN's national president, Dr. Billy Gillis-Harry, emphasized that the president's focus on reducing production costs would be incomplete without reviving the idle refineries and expanding domestic refining capacity. The prolonged inactivity of these refineries has significantly impacted millions of Nigerians whose businesses and livelihoods depend on the petroleum value chain.
Reviving the refineries, according to Gillis-Harry, would boost domestic refining capacity, decrease reliance on imported petroleum products, restore employment, and stimulate economic activities around refinery locations. Furthermore, having multiple refineries competing for market share could introduce greater efficiency into the downstream sector, encourage competition, and potentially lower petroleum product prices.
A competitive refining environment would provide consumers with more choices and compel refiners and marketers to improve efficiency and service delivery. PETROAN noted that crude costs, exchange rates, taxes, and logistics would continue to influence pump prices. The association argued that refinery revival should be part of a broader strategy to reduce energy costs, create employment, and strengthen Nigeria's economic resilience.
PETROAN welcomed the president's declaration to use Nigeria's abundant gas resources to power new industries, saying this could drive industrialization and reduce the cost of doing business. The association also acknowledged the reported decline in crude oil theft, which could support higher crude production, boost government revenue, and improve investor confidence.
However, PETROAN emphasized that the president's broader economic vision must be matched with concrete measures in the petroleum sector, including adequate crude supply to domestic refineries, increased refining capacity, efficient petroleum product distribution, and a transparent downstream market. The association called for stronger collaboration among the Federal Government, NNPCL, regulatory agencies, refinery operators, petroleum marketers, and other industry stakeholders.
The revival of government-owned refineries, PETROAN said, would send a strong signal to Nigerians invested in the petroleum industry that the country's strategic assets could be converted into productive economic opportunities. This move, combined with growing private refining capacity, could create a healthier competitive environment, strengthen domestic energy security, and support job creation.
Key points
- PETROAN urges the Nigerian government to revive idle refineries by 2027.
- Revival of refineries aims to deepen market competition and strengthen energy security.
- The move could potentially reduce petroleum product prices and create jobs.
