Seeks sustained budgetary support for local refining, modular refineries

THE Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed optimism over the daily crude oil production projection of 1.84 million barrels per day (mbpd) and an official oil price benchmark of $64–65 per barrel in Nigeria’s N58.18 trillion budget for 2026.

Expressing confidence in the budget, the group said the projection is realistic and achievable.

Speaking to journalists at the Abuja Airport, the National President of PETROAN, Dr Billy Gillis-Harry, described the 2026 Budget as a strategic and forward-looking framework capable of repositioning and strengthening the nation’s oil and gas sector for sustainable growth, improved operational efficiency, and enhanced energy security.

The group called for sustained budgetary support for local refining, modular refineries, and petrochemical development, stressing that increased domestic refining capacity will reduce fuel importation, conserve foreign exchange, create jobs, and promote stability in the downstream petroleum sector.

It stated that targeted investments in upstream oil and gas operations will boost crude oil production through field rehabilitation, renewed exploration activities, and sustained support for marginal and deep offshore fields, ultimately improving national output and increasing government revenue.

The group, in a statement by its spokesperson, Dr Joseph Obele, on Sunday, also expressed strong optimism that the crude oil production target contained in the 2026 budget is attainable, provided there is improved security for oil and gas assets, a strengthened sense of ownership, inclusion, and participation by host communities, as clearly stipulated under the Petroleum Industry Act (PIA).

The association emphasised that effective host community engagement is critical to protecting infrastructure, reducing production losses, and ensuring lasting stability in oil-producing regions.

Gillis-Harry further underscored the need for adequate funding of key regulatory institutions, particularly the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), noting that strong and well-resourced regulators are essential for effective implementation of the PIA, enhanced transparency, and restored investor confidence across the oil and gas value chain.

On national security, PETROAN commended President Bola Ahmed Tinubu for the huge allocation to security in the 2026 budget.

According to Gillis-Harry, any nation that seeks sustainable development must prioritise security, as economic growth, investment, and energy stability can only thrive in a safe and secure environment.

The association noted that enhanced funding for pipeline surveillance, deployment of modern security technology, and coordinated security operations will play a critical role in curbing crude oil theft and pipeline vandalism, safeguarding national revenue, and improving overall production efficiency.

PETROAN renewed its call for the privatisation of Nigeria’s four state-owned refineries, advocating that the process be transparently concluded by the first quarter of 2026.

The association noted that timely privatisation will improve efficiency, encourage competition in the sector, eliminate recurrent fiscal burdens on government, attract private capital and technical expertise, and ensure sustainable refinery operations in line with global best practices.

PETROAN expressed confidence that a well-implemented Nigeria 2026 Budget, anchored on security, host community inclusion, regulatory efficiency, private sector participation, and decisive refinery sector reforms, will strengthen the oil and gas sector, enhance national energy security, boost government revenue, and support sustainable economic development.

 

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