The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government to transparently privatise the country’s four state-owned refineries by the first quarter of 2026, arguing that private management is essential for operational efficiency and reduced fiscal strain.
In a statement issued on Thursday, PETROAN National President Billy Gillis-Harry described the proposed N58.18 trillion 2026 budget, premised on a crude oil production target of 1.84 million barrels per day and a benchmark price of $64–65 per barrel, as a realistic framework for implementing downstream reforms. He emphasised that privatisation would attract private capital, technical expertise, foster competition, and align Nigeria’s refining sector with international standards.
“The timely privatisation will improve efficiency, encourage competition in the sector, eliminate recurrent fiscal burdens on government, attract private capital and technical expertise, and ensure sustainable refinery operations in line with global best practices,” the statement read.
PETROAN linked the reform to broader benefits, including reduced dependence on imported petroleum products, foreign exchange conservation, job creation, and enhanced energy security. The association commended allocations in the budget for security, host community engagement under the Petroleum Industry Act (PIA), and regulatory funding, noting these would boost investor confidence and production.
Nigeria’s state-owned refineries—Port Harcourt (210,000 bpd capacity), Warri (125,000 bpd), Kaduna (110,000 bpd), and the older Port Harcourt facility—have long been plagued by inefficiencies. Despite billions spent on rehabilitation, including $1.5 billion for Port Harcourt in 2021, $897 million for Warri, and $586 million for Kaduna, the plants have remained largely unproductive.
The Port Harcourt refinery was shut down in May 2025, just months after limited operations resumed, while Warri ceased production shortly after a 2024 restart. In July 2025, Dangote Group President Aliko Dangote stated the facilities “may never work again” despite over $18 billion expended on maintenance, a view echoed by stakeholders citing obsolescence and mismanagement.
NNPC Group Chief Executive Officer Bayo Ojulari has maintained optimism, announcing in October 2025 an ongoing technical and commercial review of the refineries to assess viability for upgrades, repurposing, or partnerships. He rejected outright sales in some statements but noted “all options” remain open, with a focus on profitability and meeting PIA obligations.
This contrasts with the private Dangote Refinery, Africa’s largest at 650,000 bpd, which has begun significant production and reduced import reliance, though NNPC holds a minority stake.
PETROAN’s push reflects longstanding industry calls for privatisation to end the cycle of costly repairs yielding minimal output. Successful implementation could redirect public funds to infrastructure and security while promoting a competitive downstream market.
