The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has justified its request for a ₦100 billion intervention fund from the Federal Government to stabilize the petroleum products market and make them more affordable for Nigerians.
Dr. Billy Gillis-Harry, President of PETROAN, discussed the need for financial support on Arise TV’s This Morning Show, emphasizing that the intervention would alleviate the high cost of business operations in the sector.
“The request for ₦100 billion intervention was requested because it is going to cushion the cost of money in our business. And that will make a long way to make petroleum products available and affordable to Nigerians,” Dr. Gillis-Harry explained.
He clarified that the proposed funds could be integrated into the federal budget, which already includes significant allocations for various sectors. He highlighted that the ₦100 billion request is a small fraction of the annual budget but would have a substantial impact on the petroleum sector.
“The current cost of money is between 36 and 40 percent,” he noted, stressing the financial burden on petroleum product retailers due to high interest rates.
This pressure, he argued, directly influences the prices consumers pay at the pump. The requested intervention fund would help reduce these costs, ensuring that petroleum products remain available at more affordable prices for Nigerians.
Dr. Gillis-Harry also appealed to the federal government to prioritize this request, which he believes would positively impact the broader economy. “We hope the federal government will take this very seriously. It’s going to help ensure that Nigerians can access petroleum products at a much more affordable price,” he urged.
The request is also linked to the ongoing challenge posed by the removal of the fuel subsidy, which has led to potential job losses in the petroleum sector.
Over the weekend, PETROAN, in a statement signed by Dr. Gillis-Harry, called on President Bola Tinubu to approve the ₦100 billion grant to marketers. The association warned that without this financial support, around 10,000 marketers’ businesses could face closure due to the adverse economic effects of subsidy removal.
The statement read, in part, “PETROAN request for a grant of ₦100 billion from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses.” The association views this grant as a necessary measure to safeguard jobs and stabilize the market.
Despite facing these challenges, PETROAN is optimistic about the potential for continued growth in Nigeria’s oil and gas downstream sector.
“2024 was a significant year for Nigeria’s oil and gas downstream sector, marked by deregulation, infrastructure investments, and growth in the LPG market,” the statement continued, highlighting the sector’s resilience and future prospects.
In conclusion, PETROAN urges the federal government to act swiftly on its request, believing that the ₦100 billion intervention would provide vital support to the petroleum products market, secure jobs, and contribute to a more affordable supply of petroleum products for Nigerians.
