The Petroleum Products Retail Outlets Owners Association of Nigeria has reiterated its call for the privatisation of the country’s four state-owned refineries, urging the Federal Government to complete the process transparently by the first quarter of 2026.

The association stated that privatising the Nigerian National Petroleum Company Limited-operated refineries in a timely manner would relieve the government of recurring fiscal pressures, enhance operational efficiency, attract private investment and technical expertise, and bring Nigeria’s refining sector in line with international best practices.

In a statement, PETROAN National President Billy Gillis-Harry said years of continuous public funding for the refineries have failed to yield optimal results, making private sector-led management essential for achieving energy security and stability in Nigeria’s downstream petroleum sector.

He emphasized that properly executed privatisation would foster competition, ensure sustainable refinery operations, reduce reliance on imported petroleum products, conserve foreign exchange, and create jobs throughout the value chain.

PETROAN further highlighted that reforming the refineries is key to broader sectoral growth, noting that expanding domestic refining capacity would complement ongoing upstream investments and bolster Nigeria’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—with a crude oil production target of 1.84 million barrels per day and an oil price benchmark of $64–65 per barrel—offers a solid framework for advancing key reforms, including the privatisation of refineries.

The association maintained that decisive action on refineries, coupled with enhanced security for oil and gas infrastructure, effective host community engagement under the Petroleum Industry Act, and adequately funded regulators, would significantly boost investor confidence and sector performance.

PETROAN further argued that successfully privatising the refineries would free up government resources for critical areas such as security and infrastructure, while enabling 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 within the framework of the 2026 budget.

“PETROAN expressed confidence that a well-implemented Nigeria 2026 Budget, anchored on security, host community inclusion, regulatory efficiency, private sector participation, and decisive refinery sector reforms, will strengthen the oil and gas sector, enhance national energy security, boost government revenue, and support sustainable economic development,” the statement added.

Calls for the privatisation of Nigeria’s refineries intensified after the 60,000-barrel-per-day Port Harcourt refinery was shut down in May, just six months after being declared operational.