The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed optimism over the petroleum and energy-related messages contained in President Bola Ahmed Tinubu’s Independence Day address to Nigerians, describing the speech as a renewed indication that the Federal Government recognises the strategic role of the oil and gas sector in driving economic growth, industrialisation, employment and national prosperity.
Dr. Billy Gillis-Harry, the National President of PETROAN, particularly welcomed the President’s declaration that “we will use our gas to power new industries,” noting that effective utilisation of Nigeria’s abundant gas resources can provide the energy required to drive industrial production, reduce the cost of doing business, create employment and strengthen the competitiveness of Nigerian businesses.
These were contained in a statement on Thursday by National Public Relations Officer, PETROAN, Dr. Joseph Obele.
Gillis-Harry also welcomed the President’s statement that oil theft is down, noting that sustained reduction in crude oil theft should contribute to increased production, improved government revenue and greater investor confidence in the petroleum industry. He said the reported contribution of both the oil and non-oil sectors to Nigeria’s economic growth further demonstrates the continuing importance of the petroleum industry to the national economy.
The PETROAN National President noted that the President’s emphasis on lowering the cost of production is particularly important to petroleum marketers and consumers, stressing that affordable and reliable energy remains critical to transportation, manufacturing, agriculture and other productive sectors. He said the transition from an era of economic reforms to what the President described as the “age of prosperity” must ultimately be reflected in the real economy and in the daily lives of Nigerians.
Against this background, PETROAN advocates that President Bola Ahmed Tinubu should mandate the management of the Nigerian National Petroleum Company Limited (NNPCL) to take urgent and concrete steps to restart and sustainably operate the nation’s government-owned refineries before the January election period. Dr. Gillis-Harry said millions of Nigerians who depend directly and indirectly on the refineries and the wider petroleum value chain have suffered significant economic hardship as a result of prolonged refinery inactivity, with businesses, workers, contractors, transport operators and communities bearing the consequences.
According to PETROAN, restarting the government-owned refineries would provide multiple benefits to the Nigerian economy. It would increase domestic refining capacity, reduce dependence on imported petroleum products, create and restore employment, stimulate economic activities around refinery locations, strengthen energy security and improve the utilisation of Nigeria’s existing national assets.
Most importantly, the return of multiple refineries to productive operation could stimulate aggressive competition in the downstream petroleum market. Increased competition among domestic refineries and other suppliers could encourage efficiency, improve product availability and create market conditions capable of exerting downward pressure on petroleum-product prices, subject to crude supply costs, exchange rates, taxes, logistics and other market factors.
PETROAN believes that a competitive domestic refining environment would also provide consumers with greater choice while encouraging refiners and marketers to improve efficiency and service delivery. The Association therefore sees the revival of the government-owned refineries as not merely a refinery project, but as an important component of a broader strategy to reduce energy costs, create jobs and strengthen Nigeria’s economic resilience.
Dr. Gillis-Harry stressed that restoring the refineries would also raise hope among millions of Nigerians who have invested their livelihoods in the petroleum sector. He said visible progress in returning these strategic national assets to productive operation would demonstrate that Nigeria can convert its natural resources and existing infrastructure into tangible economic opportunities for its citizens.
PETROAN, however, believes that the broad vision contained in the Independence Day address must be followed by concrete measures across the downstream petroleum sector. The Association expects continued government attention to the optimal utilisation and sustainable operation of government-owned refineries, adequate crude supply to domestic refineries, increased domestic refining capacity, efficient petroleum-product distribution and a competitive market capable of supporting stability in the availability and prices of PMS, AGO and other petroleum products.
The Association also recognises the President’s reaffirmation of the administration’s economic reforms and its position against a return to what the President described as “addictive subsidies.” PETROAN maintains that the objective should be to develop a sustainable petroleum market that protects consumers, encourages investment and ensures that legitimate petroleum businesses can operate within a transparent, predictable and competitive environment.
Dr. Gillis-Harry called for stronger collaboration between the Federal Government, NNPCL, regulatory agencies, refinery operators, petroleum marketers and other industry stakeholders to ensure that the country’s petroleum resources deliver greater economic value to Nigerians.
PETROAN therefore welcomes the President’s declaration that “the age of reform has done its work. Now begins the age of prosperity,” and urges the Federal Government to ensure that this new phase includes a stronger, more competitive and more productive petroleum industry.
The Association believes that the successful revival of government-owned refineries, alongside the continued growth of privately owned refining capacity, can create a healthier competitive environment, strengthen domestic energy security, support job creation and potentially contribute to more competitive petroleum-product prices.
PETROAN remains committed to supporting policies and initiatives that promote energy security, strengthen domestic refining, improve petroleum-product distribution, encourage investment and ensure that the benefits of Nigeria’s oil and gas resources are increasingly felt by businesses and ordinary Nigerians.
