By Firdaus Jibril
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian National Petroleum Company (NNPC) Limited to turn its planned refinery revival partnership into a binding agreement with clear deadlines and performance targets.
PETROAN made the call in a statement signed by its Special Adviser on Media, Chris Odia, and National Public Relations Officer, Dr. Joseph Obele, following President Bola Ahmed Tinubu’s assurance that Nigeria’s refineries will be revived.
The association also welcomed the President’s position that the success of the refineries should be measured by their ability to operate profitably, rather than simply by whether they restart production.
PETROAN said the focus should now shift from assurances to a clear execution framework that makes the parties involved accountable for delivering sustainable refinery operations.
The association specifically called for the proposed technical equity partnership involving NNPC Limited, Sanjiang Chemical Company Limited, and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd. to be converted from a non-binding Memorandum of Understanding into a binding agreement.
According to PETROAN, the agreement should contain defined completion dates, throughput guarantees, availability targets, and enforceable penalties for non-performance.
The association also called for greater disclosure of the commercial structure of the partnership, including the equity arrangement, capital commitments, crude supply and pricing arrangements, offtake agreements, and the treatment of existing liabilities, where permitted by law.
PETROAN stated that independent technical due diligence should also be carried out, with a summary of the findings made public to provide clarity on the condition and remaining useful life of the refinery facilities.
It further urged the government to guarantee adequate crude supply to the refineries through the effective implementation of the Domestic Crude Supply Obligation under the Petroleum Industry Act.
The association said reliable feedstock, transparent pricing, and efficient evacuation infrastructure are essential if the refineries are to operate sustainably.
PETROAN also stressed the need for meaningful Nigerian content in the proposed partnership, particularly the transfer of technical and operational knowledge to Nigerian engineers and managers.
It said the objective should be to develop local capacity capable of operating the facilities eventually without continued dependence on foreign technical partners.
On distribution, the association called for improvements to pipelines, depots, and other evacuation infrastructure to ensure that products produced by the refineries reach consumers and independent retailers efficiently.
PETROAN said the successful revival of the Port Harcourt and Warri refineries would strengthen supply security, reduce exposure to freight and foreign-exchange pressures, and create greater competition in the downstream petroleum market.
The association also argued that having multiple functioning refineries would reduce the risks associated with relying heavily on a single major domestic supplier, noting that refineries can experience scheduled maintenance and unexpected operational disruptions.
PETROAN expressed support for the National Assembly’s inquiry into previous refinery rehabilitation spending, arguing that understanding how previous investments were deployed would help improve accountability and planning for future investments.
The association stated that bringing the refineries back into sustainable operation before the next general election could become a major economic achievement for the administration, while stressing that safety and proper commissioning should not be sacrificed to meet political timelines.
PETROAN President, Dr. Billy Gillis-Harry, said the association remains ready to work with the Federal Ministry of Petroleum Resources, NNPC Limited, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the National Assembly to develop a framework that would translate the President’s commitment into functioning refineries and measurable economic value.
The association also commended NUPENG President, Comrade Salimon Akanni Oladiti, and the union’s leadership for placing refinery revival before the President.
The association further stated that the country has the crude, technical manpower, and market required to sustain domestic refining, adding that the key requirement now is disciplined execution.