Oil marketers under the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have called on the Federal Government to carry out a full audit of an estimated ₦11.35 trillion reportedly spent on the rehabilitation of Nigeria’s state-owned refineries, warning that the lack of transparency is deepening problems in the downstream petroleum sector.
In its assessment of the oil and gas industry for 2025 and outlook for 2026, PETROAN said years of heavy public investment have failed to translate into functional refineries, raising serious concerns about accountability and value for money.
The association noted that substantial sums were committed to the turnaround maintenance of the Port Harcourt, Warri and Kaduna refineries over the past decade, yet the facilities remain largely idle or unable to sustain commercial operations.
According to PETROAN, contracts approved for the rehabilitation included about $1.5 billion for the Port Harcourt Refinery and a combined $1.48 billion for the Warri and Kaduna plants. It said the scale of spending, without commensurate results, has heightened anxiety among industry players and the public.
The group stressed the need for urgent forensic audits of funds borrowed and disbursed for refinery projects, arguing that clear accountability mechanisms are essential to restore confidence in public investments and prevent further waste.
PETROAN also linked the refinery failures to persistent challenges in fuel supply during 2025, noting that Nigeria’s continued reliance on imported petroleum products has placed pressure on foreign exchange demand and pump prices.
It recalled that the Port Harcourt Refinery, the country’s largest government-owned facility, was shut down in May 2025 shortly after resuming operations, following mechanical issues and the inability to maintain stable production.
The shutdown, the association said, has not only worsened supply constraints but also negatively affected host communities around the refinery.
Beyond refinery operations, PETROAN highlighted intense competition in the downstream market last year, driven by pricing battles between importers and local refiners.
While consumers benefited temporarily from lower prices, the association said the frequent price changes resulted in significant financial losses for retail outlet operators and discouraged long-term investment.
On policy measures, PETROAN reviewed the naira-for-crude initiative, under which between 250,000 and 300,000 barrels of crude oil per day were allocated to domestic refineries.
The policy, it said, helped reduce pressure on foreign exchange and supported local refining, but its overall impact was limited by supply delays, pricing disputes and operational bottlenecks.
The association added that crude oil production showed slight improvement in 2025, averaging between 1.3 and 1.5 million barrels per day, including condensates. However, output remained below Nigeria’s OPEC quota due to oil theft, pipeline vandalism, aging infrastructure and funding constraints.
Looking ahead, PETROAN said product availability could improve in 2026 but cautioned that affordability would depend on exchange rate stability, reliable crude supply and balanced regulation.
It reiterated calls for refinery privatisation, transparent crude allocation, stronger stakeholder engagement and stricter oversight of public spending, stressing that these steps are critical to stabilising Nigeria’s petroleum sector and attracting investment.
