Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has urged the Nigerian government to sell the Warri and Kaduna refineries.
PETROAN disclosed this in a statement on Saturday titled, ‘Retrospect of Nigeria’s Oil and Gas Downstream Sector in 2024′, signed by its National President, Billy Gillis-Harry; Secretary, Adedibu Aderibegbe; and spokesperson, Joseph Obele.
According to the marketers, privatisation of the 125,000 barrels per day Warri Refinery and 110,000 barrels per day Kaduna Refinery would improve their efficiency and reduce government spending.
PETROAN explained that the Nigerian government needs to sell the refineries to a reputable firm to guarantee a successful 2025 in the downstream sector.
“Based on PETROAN’s observations, the following recommendations are made to
Ensure the effectiveness and efficiency of the downstream sector in 2025:
“Privatisation of Nigerian-Owned Refineries_: Privatise Nigerian-owned refineries, such as the Warri and Kaduna refineries, to reputable private companies to improve efficiency and reduce government spending.
“Meanwhile, PETROAN calls on President Bola Ahmed Tinubu’s administration to consider its request for N100 billion in intervention funds to prevent filling stations from shutting down over the harsh economic realities.
“PETROAN request for a grant of N100 billion from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses. The request is in response to the threat of job losses that would result from the removal of the fuel subsidy,” the statement reads.
PETROAN’s recommendation for the sale of the Warri and Kaduna refineries comes amid a claim by former President Olusegun Obasanjo that NNPCL rejected Dangote’s offer to manage Port Harcourt and Kaduna refineries in 2007.
Meanwhile, a Senior Advocate of Nigeria, Femi Falana, revealed that the sale of the Port Harcourt and Kaduna refineries was cancelled because Obasanjo did not follow due process.
This comes as the Nigerian National Petroleum Company Limited, NNPCL, announced that Warri Refinery has resumed operation after rehabilitation.
On the Kaduna Refinery, NNPCL, in a recent statement, noted that the plant, together with the Port Harcourt plant, is undergoing a total overhaul.
DAILY POST recalls that in August 2024, NNPCL announced a plan to hand over the Warri and Kaduna refineries to a private firm.
