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The Petroleum Product Retail Outlet Owners Association of Nigeria has clarified that the N100bn grant it requested from President Bola Tinubu is a loan and not free money.
The PUNCH recalls PETROAN recently asking Tinubu for a N100bn grant to help its members cope with the effects of the fuel subsidy removal.
The retailers said the grant would help stem the threat of job losses occasioned by the removal of subsidies.
It could be recalled that Tinubu removed fuel subsidies when he assumed office in 2023, culminating in a sharp increase in the cost of petroleum products, especially petrol and diesel.
Marketers said the cost of lifting a 33,000 truck rose from an average of N7m in May 2023 to N30m in October 2024, when the Federal Government fully deregulated the downstream sector.
As a result, some marketers were reportedly sent out of the business when they could no longer afford the cost.
It was also gathered that some retailers now contribute money to buy one truck of premium motor spirit, which they share to sell in their filling stations.
In a document made available to our correspondent, PETROAN President Billy Gillis-Harry said 10,000 marketers could close shops if the federal government did not support them.
He said, “PETROAN requests a grant of N100bn from President Bola Tinubu to help prevent the closure of 10,000 marketers’ businesses.
“The request is in response to the threat of job losses that would result from the removal of the fuel subsidy.”
Speaking during an interview with our correspondent, Gillis-Harry explained that the association was not seeking free money, but it wanted the fund to be kept in an energy bank where its members could access loans.
He noted, “Today, you can see us asking the government to give us N100bn as seed into the energy bank.
We didn’t say they should give us free money. We said, ‘Put it in the energy bank and give it to us as a single-digit interest loan.’ With that, the fuel price will come down.
“That we are asking for free money? No! We are only saying that the government should put the grant in Nigeria’s energy bank. Set up the energy bank of Nigeria and put the N100bn there as seed capital. N100bn is nothing, but it’s going to change the content of the business.”
He expressed concerns over the high interest rates in banks.
“We are paying 36 per cent to 40 per cent interest on every money we loan from the bank. You can’t get a cheaper price with that kind of money. We must pay the cost of money for every product we have. If we have a 9 per cent interest rate, that makes a difference. The Nigerian user will have the advantage. And the N100 bn, because it is in the hands of the private sector, it will be recycled. Before three years, you will see that the money will grow to over N700bn,” he added.
Similarly, the National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, also asked for a special bank like the upcoming Africa Energy Bank to address the concerns of marketers in need of loans.
He said, “In IPMAN, we have been soliciting for a situation whereby we have a bank of oil and gas, like we have the Bank of Industry. If we have a bank of oil and gas, it will be able to understand our language and understand the dynamic in the business. No marketer can go to the Bank of Industry and get anything because it’s not made for us.
“But when you look at the huge investment required for our business now, you will agree with me that we need the government’s backing. We need the government’s help by way of a grant.”
In his recommendations for 2025, the PETROAN boss sought continued investment in critical infrastructure and preventive maintenance, such as refineries, pipelines, and storage facilities, to improve the country’s refining capacity and reduce reliance on imported petroleum products.
He also encouraged the development of local content by supporting indigenous companies and providing incentives for research and development in the downstream sector.
To enhance the effectiveness of compressed natural gas in 2025, Gillis-Harry urged the government to invest in expanding CNG infrastructure, saying, “Private sector participation should be encouraged to increase access to funding and expertise. Regulatory frameworks should be reviewed to reduce operational costs and attract investment. Stakeholder engagement and awareness campaigns should be intensified to promote the adoption of CNG.”
Speaking on cross-border smuggling, Gillis-Harry suggested that the government collaborate with neighbouring countries to strengthen border security and prevent smuggling and also utilise digital tracking systems to monitor petroleum products from refineries to retail outlets.
For enhanced local fuel production, the retailer said local refineries should be given priority whenever it comes to crude supply.
“To boost Nigeria’s refining capacity and reduce reliance on imported petroleum products, we strongly recommend that crude oil be made available for local refineries. This strategic move will have a positive impact on the country’s economy and energy security. By prioritising local refineries’ access to crude oil, Nigeria can unlock the full potential of its refining sector, drive economic growth, and enhance energy security,” he added.
In his review of the previous year, he noted that 2024 was a significant year for Nigeria’s oil and gas downstream sector, marked by deregulation, infrastructure investments, and growth in the LPG market.
According to him, the rehabilitation and commencement of production at the Port Harcourt Refinery, as well as the emergence of the Dangote Refinery, were notable highlights.
“While challenges persist, the sector is poised for continued growth and development in the years to come. As the industry navigates the energy transition and embraces new technologies, it is essential for stakeholders to remain adaptable, innovative, and committed to sustainable development,” he maintained, calling on the government to privatise the Warri and Port Harcourt refineries.
