The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has renewed its call for the privatisation of Nigeria’s four state-owned refineries and conclude the process by the first quarter of 2026.
The association said the timely privatisation of the refineries operated by the Nigerian National Petroleum Company Limited (NNPCL) would eliminate the recurring fiscal burden on the government, improve operational efficiency, attract private capital and technical expertise, and align Nigeria’s refining sector with global best practices.
The PETROAN National President, Billy Gillis-Harry, said in a statement that public funding of the refineries had failed to deliver optimal results over the years, making private sector-led management inevitable if the country is to achieve energy security and stability in the downstream petroleum sector.
Gillis-Harry stressed that privatisation, if properly executed, would encourage competition, ensure sustainable refinery operations, reduce Nigeria’s dependence on imported petroleum products, conserve foreign exchange, and support job creation across the value chain.
PETROAN also noted that increased domestic refining capacity would complement ongoing investments in upstream production and strengthen the country’s overall energy outlook.
“PETROAN renewed its call for the privatisation of Nigeria’s four state-owned refineries, advocating that the process be transparently concluded by the first quarter of 2026. The association noted that 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 said.
The association expressed confidence that the 2026 Budget, which is based on a crude oil production target of 1.84 million barrels per day and an oil price benchmark of $64–65 per barrel, provides a strong framework for implementing key reforms, including refinery privatisation.
It maintained that decisive action on refineries, alongside improved security for oil and gas infrastructure, effective host community engagement under the Petroleum Industry Act, and adequately funded regulators, would significantly enhance investor confidence and sector performance.
PETROAN argued that the successful privatisation of the refineries would free government resources for critical areas such as security and infrastructure, while allowing the private sector to drive efficiency and innovation in refining and petrochemical development.
The association concluded that refinery privatisation remains central to achieving a stable downstream sector and maximising the benefits of Nigeria’s oil and gas resources under the 2026 budget framework.
GIK/APA