Urges transparent privatisation of four state-owned refineries by Q1 2026
Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is optimistic that the N58.18 trillion 2026 budget, anchored on a daily crude oil production projection of 1.84 million barrels per day (mbpd) and an official oil price benchmark of $64 to $65 per barrel, is realistic and achievable.
The association said the assumptions underpinning the 2026 fiscal framework are attainable, provided ongoing reforms in the oil and gas sector are sustained and key challenges around security, regulation and infrastructure are effectively addressed.
In a statement signed by National Public Relations Officer (PRO), PETROAN, Dr Joseph Obele, PETROAN’s National President, Dr Billy Gillis-Harry, described the 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.
According to him, targeted investments in upstream oil and gas operations, as outlined in the budget, will help 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.
PETROAN 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, as well as 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 engagement with the host community remains crucial for protecting infrastructure, minimising production losses, and ensuring long-term 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). He noted strong and well-resourced regulators as essential for effective implementation of the PIA, enhanced transparency and the restoration of investor confidence across the oil and gas value chain.
On national security, PETROAN commended President Bola Tinubu for the substantial allocation to security in the 2026 Budget.
“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,” Gillis-Harry said.
PETROAN noted that enhanced funding for pipeline surveillance, the deployment of modern security technology, and coordinated security operations would play a critical role in curbing crude oil theft and pipeline vandalism, safeguarding national revenue, and improving overall production efficiency.
It renewed its call for the privatisation of Nigeria’s four state-owned refineries, urging that the process be transparently concluded by the first quarter of 2026.
It stated that timely privatisation would improve efficiency, encourage competition in the sector, eliminate recurring fiscal burdens on the government, attract private capital and technical expertise, and ensure sustainable refinery operations in line with global best practices.
The association 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 would strengthen the oil and gas sector, enhance national energy security, boost government revenue and support sustainable economic development.
