By Bunmi Yekini
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has praised the Federal Government’s decision to ban the exportation of crude oil allocated for local refineries. The move, according to the association, will boost domestic refining, reduce fuel imports, and stabilize Nigeria’s foreign exchange reserves.
PETROAN’s National President, Dr Billy Gillis-Harry, described the ban as a crucial step in ending the long-standing diversion of crude oil meant for domestic refining.
“For years, crude oil allocated to our local refineries has been smuggled to the international market in a major racketeering scheme,” Dr. Harry said. “This policy will help revive our refining sector, create jobs, and ensure that Nigeria benefits from value-added petroleum products instead of just being a raw material exporter.”
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Currently, about 500,000 barrels of crude oil per day are designated for local refining, yet much of it ends up abroad. PETROAN believes this has significantly contributed to the neglect of Nigeria’s refineries, forcing the country to rely heavily on imported petroleum products.
Dr. Harry urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce strict penalties on defaulters, including refineries, cargo vessels, and companies that violate the new policy.
“This is not just about refining fuel; it’s about growing our economy. Local refining will strengthen our petrochemical and agricultural industries, create employment, and help bridge income inequalities,” he emphasized.
The policy is also expected to lower fuel prices in the long run. “With steady local supply, consumers should expect price reductions and a more stable energy market,” Dr. Harry added.
PETROAN called on all industry stakeholders to support the initiative, stressing that Nigeria must transition from an exporter of raw crude to a nation that refines and exports value-added products for economic growth.