PETROAN Backs World Bank On Import Licences For Healthy Downstream Competition

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has reiterated its commitment to fostering healthy competition in Nigeria’s downstream petroleum sector to drive growth, efficiency, and price stability.
PETROAN highlighted the World Bank’s recent position, on April 10, 2026, urging the federal government to reinstate petrol import licences to prevent an inflation spike.
The national president of PETROAN Dr Billy Gillis-Harry, while getting reactions from journalists
in Abuja regarding the statement made by world bank, emphasized that this position further
validates PETROAN’s long-standing advocacy for a liberalised and competitive downstream
market.

According to the report, the World Bank highlighted that restricted competition and supply
constraints in the downstream sector have contributed to rising fuel prices, with Premium Motor
Spirit (PMS) prices exceeding import parity levels. The institution further warned that sustained
supply rigidity, coupled with rising global oil prices, could worsen inflationary pressures across
the Nigerian economy.
Reacting to this, Dr Billy Gillis-Harry stated that competition remains the most effective tool for
stabilising prices and ensuring energy security.
PETROAN said it aligns with this position and emphasised that a competitive and liberalised market
framework is essential for ensuring price moderation, product availability, and operational efficiency.
Dr Gillis-Harry noted that the reintroduction of petrol import licences will promote supply diversification, prevent monopolistic tendencies, and ultimately protect
consumers from exploitative pricing.

He further stressed that the recent outrageous price of petroleum products would not have occurred if government-owned refineries were fully functional or properly privatised.
PETROAN calls on the federal government and relevant regulatory agencies to urgently implement policies that encourage open market participation, remove supply
bottlenecks, and ensure a level playing field for all operators in the downstream sector.
The retail outlet owners also made the following recommendations to the federal government, NMDPRA, and the Nigerian National Petroleum Company Limited: Immediate reinstatement of petrol import licences to encourage multiple supply sources, deepen competition, and stabilise pump prices; Full privatisation or commercial restructuring of government-owned refineries to ensure efficiency, transparency, and optimal performance; Commencement of production activities at Port Harcourt Refinery; as well as creation of a truly deregulated and competitive market environment with clear regulatory oversight that prevents monopolies and promotes fair pricing across the value chain.

The association reiterated it’s commitment to working collaboratively with stakeholders to build a resilient, transparent, and competitive petroleum distribution system that supports economic stability and national development.
Furthermore, PETROAN strongly asserts that sustained competition in the downstream sector can only be achieved through a combination of fuel importation and the full privatisation of
government-owned refineries in Port Harcourt, Warri, and Kaduna. This, according to Billy GillisHarry, will ensure efficiency, eliminate operational bottlenecks, and create a truly competitive supply environment.
The Association draws a clear parallel with the transformation witnessed in Nigeria’s
telecommunications sector following liberalisation. The entry of private operators such as MTN
Nigeria and Airtel Nigeria led to improved service delivery, wider coverage, innovation, and a
significant reduction in costs for consumers.

PETROAN believes that similar reforms in the downstream petroleum sector will yield
comparable benefits for Nigerians.
The Association further stresses that healthy competition is not a threat to local refining but
rather a necessary mechanism to stabilise the market while domestic refining capacity continues to grow, including contributions from facilities such as the Dangote Petroleum Refinery.

PETROAN also acknowledges the strategic importance of investments such as the Dangote
Petroleum Refinery, which represents a significant milestone in Nigeria’s industrial and energy
landscape. The Association notes that such large-scale private investments demonstrate the
potential of the Nigerian economy when supported by the right policies. However, PETROAN
emphasises that true economic growth and sustainability can only be achieved through
liberalisation that encourages multiple investors, promotes competition, and avoids market
concentration.
The Association further stresses that healthy competition is not a threat to local refining but
rather a necessary mechanism to stabilise the market while domestic refining capacity continues to grow.