The Petroleum Product Retail Outlet Owners Association of Nigeria has clarified that the N100 billion it requested from President Bola Tinubu is intended as a loan and not a non-repayable grant.
This follows its initial request, which sought the funds to support its members in mitigating the impact of fuel subsidy removal on their operations.
The retailers said the grant would help stem the threat of job losses occasioned by the removal of subsidies.
It could be recalled that Tinubu removed fuel subsidies when he assumed office in 2023, culminating in a sharp increase in the cost of petroleum products, especially petrol and diesel.
The full deregulation of Nigeria’s downstream sector in October 2024 has significantly increased costs for petroleum marketers. The cost of lifting a 33,000-liter truck rose sharply from an average of N7 million in May 2023 to N30 million by October 2024.
This drastic increase has forced some marketers out of business, as they could no longer sustain the rising operational expenses.
In response to rising costs, some petroleum retailers now pool funds to purchase a single truck of Premium Motor Spirit, which they then share among their filling stations for sale.
Commenting on the development, PETROAN President Billy Gillis-Harry said that the association is not requesting free money but rather proposing that the N100 billion fund be deposited in an energy bank.
He stated, “Today, you can see us asking the government to give us N100bn as seed into the energy bank.
“We didn’t say they should give us free money. We said, ‘Put it in the energy bank and give it to us as a single-digit interest loan.’ With that, the fuel price will come down.
“That we are asking for free money? No! We are only saying that the government should put the grant in Nigeria’s energy bank. Set up the energy bank of Nigeria and put the N100bn there as seed capital. N100bn is nothing, but it’s going to change the content of the business.”
Gillis-Harry expressed concerns about the high interest rates charged by commercial banks, which make it difficult for petroleum retailers to access affordable financing.
“We are paying 36 per cent to 40 per cent interest on every money we loan from the bank. You can’t get a cheaper price with that kind of money. We must pay the cost of money for every product we have. If we have a 9 per cent interest rate, that makes a difference. The Nigerian user will have the advantage. And the N100 bn, because it is in the hands of the private sector, it will be recycled. Before three years, you will see that the money will grow to over N700bn,” he said.
Meanwhile, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, has also called for the establishment of a specialized financial institution, such as the upcoming Africa Energy Bank, to address the financial needs of petroleum marketers.
He said, “In IPMAN, we have been soliciting for a situation whereby we have a bank of oil and gas, like we have the Bank of Industry. If we have a bank of oil and gas, it will be able to understand our language and understand the dynamic in the business. No marketer can go to the Bank of Industry and get anything because it’s not made for us.
“But when you look at the huge investment required for our business now, you will agree with me that we need the government’s backing. We need the government’s help by way of a grant.”
In his 2025 recommendations, PETROAN President emphasized the need for sustained investment in critical infrastructure, including refineries, pipelines, and storage facilities, to boost Nigeria’s refining capacity and minimize reliance on imported petroleum products.
He also advocated for the promotion of local content by supporting indigenous companies and offering incentives for research and development in the downstream sector, aiming to enhance innovation and self-sufficiency within the industry.
“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,” Gillis-Harry added.
