PETROAN Seeks N100bn Grant To Save Businesses Of 10,000 Oil Marketers From Collapse

… Urges FG To Increase Investments In CNG, Other Infrastructure

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is seeking a N100bn grant from President Bola Tinubu to save over 10,000 oil marketers from running out of business in 2025.

The downstream players also urged the federal government to invest heavily in Compressed Natural Gas (CNG) infrastructure and other critical infrastructure, such as refineries, pipelines, and storage facilities.

The recommendations were contained in a publication by the marketers on Saturday with the subject, ‘PETROAN’S Retrospect Of Nigeria’s Oil and Gas Downstream Sector 2024,’ obtained by THE WHISTLER.

PETROAN noted key developments and industry milestones that impacted the sector, including the restreaming of the Port Harcourt Refinery, Warri Refinery and the Dangote Petroleum Refinery & Petrochemicals.

“This development marked a significant step towards increasing Nigeria’s refining capacity and reducing dependence on imported petroleum products. The restart of the refinery is expected to have a positive impact on the country’s energy security and economy,” PETROAN said.

PETROAN said 2024 was a significant year for Nigeria’s oil and gas downstream sector.

However, the association admitted challenges which requires investment in critical infrastructures.

According to PETROAN, the government and other stakeholders in the downstream sector need an innovative approach to ensure the effectiveness and efficiency of the downstream sector in 2025.

The association said, ” PETROAN request for a grant of ₦100bn 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.

“Continue to invest in critical infrastructure and preventive maintenance, such as refineries, pipelines, and storage facilities, to improve the country’s refining capacity and reduce reliance on imported petroleum products.

“To enhance the effectiveness of CNG in 2025, the government should invest in expanding CNG infrastructure: Private sector participation should be encouraged to increase access to funding and expertise.

“Regulatory frameworks should be reviewed to reduce operational costs and attract investment. Stakeholder engagement and awareness campaigns should be intensified to promote the adoption of CNG.”

PETROAN raised the alarm on the need to address cross-border smuggling of petroleum products. It urged collaboration with neighbouring countries to strengthen border security and prevent smuggling, and also utilise digital tracking systems to monitor petroleum products from refineries to retail outlets.

The marketers also highlighted the need to prioritize local refineries’ access to crude oil.

PETROAN said, “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.

“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.

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

“Establish a robust monitoring and evaluation framework to track the performance of downstream operators and ensure compliance with regulatory requirements.”

PETROAN further encouraged the government to ensure the development of local content by supporting indigenous companies and providing incentives for research and development in the downstream sector.

PETROAN Seeks N100bn Grant To Save Businesses Of 10,000 Oil Marketers From Collapse is first published on The Whistler Newspaper