The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for the restoration of the Port Harcourt and Warri refineries, arguing that the strategic importance of state-owned refineries has increased despite the expansion of private refining capacity in the country.
The association noted that Nigeria’s petrol import bill dropped significantly from N2.271 trillion in the first quarter of 2025 to N87.4 billion during the corresponding period in 2026. It added that domestic refineries accounted for about 76.7 per cent of the country’s petrol supply within the period.
However, PETROAN cautioned that relying heavily on a small number of domestic suppliers could expose the downstream sector to another form of supply risk.
The association explained that moving from dependence on imported petroleum products to dependence on a limited number of local suppliers had not eliminated vulnerability but merely changed its nature.
“A market that has moved from import dependence to single-source dependence has changed the shape of its risk, not the size of it,” PETROAN said.
According to the association, restoring the Port Harcourt and Warri refineries to their stated capacities of 210,000 barrels per day and 125,000 barrels per day respectively would provide an additional 335,000 barrels per day of geographically distributed refining capacity.
PETROAN said this would strengthen the country’s supply security, encourage price stability, improve regional distribution and enhance Nigeria’s bargaining position in the downstream petroleum market.
PETROAN Raises Concerns Over Proposed Partnership
The association also commented on the proposed technical equity partnership involving NNPC Limited, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd.
While welcoming the initiative, PETROAN urged the parties to approach the proposed arrangement with caution.
It noted that the memorandum of understanding signed in April 2026 remains non-binding and is still subject to regulatory approvals and further negotiations.
The association therefore called for the MoU to be converted into a legally binding agreement containing clear completion timelines, throughput guarantees, minimum availability requirements and enforceable penalties for non-performance.
PETROAN also demanded greater transparency regarding the proposed equity structure, capital contributions, crude supply pricing, offtake arrangements and existing liabilities associated with the refineries.
It further called for independent technical due diligence before the partnership is finalised.
Crude Supply Remains Critical
The association stressed the need to guarantee adequate crude oil supply to the refineries through effective implementation of the Domestic Crude Supply Obligation provided for under the Petroleum Industry Act.
“A refinery without secured crude is a stranded asset with better paperwork,” PETROAN said.
The association also emphasised that Nigerian content within the proposed partnership should go beyond meeting employment quotas.
It argued that genuine technology and managerial knowledge transfer must be at the centre of the arrangement to ensure Nigerian engineers and professionals can eventually operate and maintain the facilities independently.
“A partnership that does not leave behind a cadre capable of running these plants unaided has purchased a decade, not a solution,” PETROAN warned.
Impact on Consumers, Businesses
According to PETROAN, the successful restoration of the Port Harcourt and Warri refineries would provide significant benefits to petroleum retailers and consumers, particularly across the South-South and South-East regions.
The association said locally refined products would shorten supply routes, reduce exposure to transportation costs and foreign-exchange fluctuations, and promote greater competition in the downstream market.
It also highlighted the potential employment opportunities that could arise from the revival of the refineries.
PETROAN described the Port Harcourt and Warri refinery corridors as potential industrial hubs capable of supporting contractors, engineers, technicians, artisans and small businesses operating around the facilities.
The association ultimately argued that returning both refineries to sustainable operations before the next general election could become one of the Federal Government’s most significant economic achievements, particularly in strengthening domestic energy security and reducing vulnerabilities within the petroleum supply chain.
