The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has renewed its advocacy for the privatization of Nigeria’s four state-owned refineries operated by the Nigerian National Petroleum Company Limited (NNPCL), urging the Federal Government to complete the process by the first quarter of 2026.
In a recent statement, PETROAN’s National President, Billy Gillis-Harry, expressed concern over the long history of heavy public spending on the refineries without commensurate commercial returns. He noted that decades of government ownership have failed to deliver sustainable refining capacity, resulting in persistent financial losses and inefficiencies within the downstream petroleum sector.
According to Gillis-Harry, continued public funding of the refineries has proven ineffective, making private sector-led management the most viable pathway to achieving energy security and long-term stability in Nigeria’s downstream oil and gas industry. He stressed that privatization would introduce modern technical expertise, improve operational efficiency, and attract much-needed private capital.
PETROAN outlined several potential benefits of privatizing the refineries, including reduced reliance on imported petroleum products, preservation of foreign exchange reserves, improved fuel supply reliability, and expanded job creation across the energy value chain. The association also argued that transferring refinery operations to competent private investors would allow government resources to be redirected toward critical national priorities such as security, infrastructure development, and social services.
The association further emphasized that a transparent and well-structured privatization process would align Nigeria’s refining sector with international best practices, encourage healthy competition, and complement ongoing investments in upstream oil and gas production.
Linking its position to broader fiscal planning, PETROAN referenced the assumptions underlying the 2026 national budget, including a crude oil production target of 1.84 million barrels per day and an oil price benchmark of approximately $64–65 per barrel. It maintained that decisive reforms in the refining sector, combined with improved security for oil assets, effective host community engagement under the Petroleum Industry Act (PIA), and adequately funded regulatory institutions, would significantly enhance investor confidence.
The renewed call comes amid ongoing industry debates, particularly as NNPCL has previously indicated its intention to retain and rehabilitate certain refineries, including the Port Harcourt facility. However, PETROAN argued that years of underperformance and mounting economic costs have strengthened the case for private-sector participation.
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Ultimately, the association maintained that privatizing the state-owned refineries is critical to unlocking Nigeria’s full oil and gas potential, ending the cycle of fiscal waste, and building a more competitive and resilient downstream petroleum sector ahead of 2026.