PETROAN Urges FG to Privatise NNPC Refineries by Q1 2026

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has renewed its call for the privatisation of the Nigerian National Petroleum Company Limited (NNPC) refineries, asking the Federal Government to conclude the process by the first quarter of 2026.

The association said Nigeria can no longer sustain decades of poor refinery performance, repeated rehabilitation cycles and rising public expenditure without dependable output. PETROAN argued that the country’s downstream market needs a clear policy decision, warning that continued uncertainty around state-owned refineries is slowing investment and weakening long-term planning in the sector.

Nigeria’s four state refineries in Port Harcourt, Warri and Kaduna have, over the years, consumed huge sums for turnaround maintenance and upgrades. PETROAN said the record has not matched the spending, with plants either inactive for long periods or operating below nameplate capacity. In practical terms, the group said this has left the country exposed to imported petroleum products and foreign exchange shocks whenever global prices or supply chains tighten.

According to PETROAN, a privatisation plan would shift refinery operations toward performance, cost control and measurable accountability. The association said private operators, backed by technical and financial competence, are more likely to maintain facilities on schedule, invest in modernisation and run assets at commercially viable levels.

The group also said privatisation should not be treated as an all-or-nothing sale. It said government can structure the process to keep strategic safeguards, including minority equity participation, while transferring operational control to firms that can meet strict performance obligations. PETROAN said this model can protect national interest and still deliver efficiency that has remained elusive under direct state management.

Beyond refinery operations, PETROAN linked the issue to broader economic outcomes. The association said persistent underperformance in domestic refining contributes to pressure on foreign exchange, higher logistics costs and periodic supply strain in the downstream market. It added that stronger domestic processing capacity could improve energy security and support a more stable pricing environment over time.

PETROAN pointed to private-sector progress in other parts of Nigeria’s petroleum value chain as evidence that new investment structures can work. It said recent growth in private and modular refining projects has shown better project execution and faster decision-making than legacy public-sector models, even though the industry still faces policy and infrastructure constraints.

The association maintained that delaying reform carries its own cost. It said investors are watching how government resolves the future of the NNPC refineries and whether policy commitments will be matched by implementation timelines. In PETROAN’s view, setting and meeting a Q1 2026 deadline would send a strong signal that Nigeria is ready to remove structural bottlenecks in the downstream sector.

The body therefore asked the Federal Government to move from consultations to action, define transparent transaction terms and ensure credible operators emerge through a competitive process. PETROAN said the goal is not simply a transfer of ownership, but a refinery system that actually works — one that reduces waste, supports local supply and eases the burden on public finances.

For industry participants, the association said, the question is no longer whether reform is needed, but how quickly and how effectively it can be executed. PETROAN said completing refinery privatisation by early 2026 would mark a turning point for the sector and could help reset confidence in Nigeria’s energy-market reforms.