The Petroluem Products Retail Outlets Owners Association of Nigeria (PETROAN) has asked the Federal Government to privatise state-owned refineries, requesting a ₦100bn grant from President Bola Tinubu to help oil marketers stay afloat.

In a statement on Saturday, titled PETROAN’S Retrospect of Nigeria’s Oil and Gas Downstream Sector 2024, the association listed several groundbreaking moves in the sector in the outgone year.

But it recommended the privatisation of “Nigerian-owned refineries, such as the Warri and Kaduna refineries, to reputable private companies to improve efficiency and reduce government spending”.

PETROAN in a statement signed by its President Billy Gillis-Harry, national secretary Adedibu Aderibigbe, and spokesman Joseph Obele, said the grant request is to avoid the closure of oil marketers’ businesses.

This, it said, is “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 association called on authorities to work with “neighbouring countries to strengthen border security and prevent smuggling, and also utilize digital tracking systems to monitor petroleum products from refineries to retail outlets”.

“To boost Nigeria’s refining capacity and reduce reliance on imported petroleum products, we strongly recommend that crude oil be made available for local refineries,” the statement read.

“This strategic move will have a positive impact on the country’s economy and energy security. By prioritizing local refineries’ access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security.”

Since the removal of fuel subsidy in May 2023, the cost of the essential commodity has moved from around ₦170 to about ₦1,000 in several parts of the country.

But PETROAN wants a “competitive market by encouraging new entrants and promoting a level playing field to prevent monopolies and ensure fair pricing”.