The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is calling on the Federal Government to privatize the country’s four state-owned oil refineries by early 2026.

Billy Gillis-Harry, the group’s National President, highlighted that privatizing these refineries on time could help reduce financial burdens on the government, improve how well the refineries operate, attract private investment, and bring Nigeria’s oil refining practices in line with international standards. He pointed out that relying on public funding hasn’t been very effective, and that having private companies manage the refineries is crucial for ensuring a stable energy supply.

PETROAN believes that improving the country’s ability to refine oil will promote growth in the industry and decrease the need to import oil products from other countries.

The association showed confidence that the 2026 Budget, which aims for crude oil production of 1.84 million barrels each day with a target price of $64–65 per barrel, sets a strong base for important changes like refinery privatisation.

They highlighted that taking strong steps on refineries, ensuring better security for oil and gas facilities, engaging communities effectively, and having well-supported regulators would increase investor trust and improve the sector’s performance.

PETROAN explained that selling the refineries could help the government focus its resources on essential areas, such as security and infrastructure development. This move would also open the door for private companies to run the refineries more efficiently and bring fresh ideas to improve their operations.

The association concluded by stating that refinery privatisation is crucial for a stable downstream sector and for maximising the benefits of Nigeria’s oil and gas resources within the 2026 budget plan. Demands for the sale of Nigeria’s oil refineries have increased after the Port Harcourt refinery shut down in May, just six months after being declared operational. Similarly, the Warri refinery also stopped working shortly after it opened. The Manufacturers Association of Nigeria has asked the government to sell these refineries, stating that they have been hurting the economy despite a lot of money being spent to fix them.

In 2021, the Nigerian government set aside N100 billion to renovate the country’s oil refineries, planning to spend about N8.33 billion each month. However, between 2013 and 2017, around $396.33 million was reportedly spent on maintenance as well, yet the refineries are still not in operation as of now.

Bayo Ojulari, the new Chief Executive Officer of the Nigerian National Petroleum Corporation (NNPC), has rejected suggestions to sell the refineries. He is optimistic about fixing the three facilities, responding directly to Alhaji Aliko Dangote, the head of the Dangote Group, who mentioned that the government refineries might never operate again. Ojulari confidently stated that the refineries would be brought back to life.

Recently, he shared that NNPC is working on assessing the condition of its three refineries to decide whether to renew their operations or repurpose them for better efficiency. This effort is part of a larger plan to transform the refineries into profitable assets that can supply fuel for Nigeria while meeting international standards.

Ojulari noted that this review marks a fresh start for Nigeria’s oil refining industry. Currently, NNPC Limited is in a phase called the “Technical and Commercial Review,” which aims to evaluate how well the refineries are functioning and determine the best actions moving forward—whether to upgrade them or find new uses to ensure they work effectively in the long run.

In November, the Nigeria Midstream and Downstream Petroleum Regulatory Authority reported that NNPC imported a significant amount of petrol. This issue is largely as a result of government refineries not been in operation.