The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed strong confidence that the federal government's proposed N58.18 trillion budget for 2026 is a realistic and attainable fiscal plan. The association's optimism hinges on the budget's foundation of a daily crude oil production target of 1.84 million barrels per day (mbpd) and an oil price benchmark set between $64 and $65 per barrel.
Key Conditions for Budget Success
In a statement released on 22 December 2025 and signed by its National Public Relations Officer, Dr Joseph Obele, PETROAN outlined critical conditions necessary for achieving the budget's assumptions. The association's National President, Dr Billy Gillis-Harry, described the budget as a strategic framework designed to reposition Nigeria's oil and gas sector for sustainable growth and enhanced energy security.
PETROAN emphasised that success depends on sustaining ongoing sector reforms and effectively tackling persistent challenges. Improved security for oil and gas assets was highlighted as a non-negotiable prerequisite for meeting the 1.84 mbpd production goal. The association also stressed the importance of fostering a genuine sense of ownership and inclusion among host communities, as mandated by the Petroleum Industry Act (PIA), to protect infrastructure and ensure long-term stability in the Niger Delta.
Strengthening Regulation and Commending Security Focus
Dr Gillis-Harry underscored the urgent need for adequate funding of the sector's regulatory bodies. He identified the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) as institutions requiring robust financial support. According to PETROAN, well-resourced regulators are essential for the effective implementation of the PIA, enhancing transparency, and rebuilding investor confidence across the entire oil and gas value chain.
On the issue of national security, the association commended President Bola Tinubu for the substantial allocation to security in the 2026 budget. "Any nation that seeks sustainable development must prioritise security, as economic growth, investment, and energy stability can only thrive in a safe and secure environment," Gillis-Harry stated. PETROAN believes that increased funding for pipeline surveillance, modern security technology, and coordinated operations will be critical in curbing crude oil theft and pipeline vandalism, thereby safeguarding national revenue.
Urgent Call for Refinery Privatisation
A significant part of PETROAN's statement was a renewed and urgent call for the government to privatise the country's four state-owned refineries. The association urged that this process be conducted with full transparency and concluded by the first quarter of 2026.
The group argued that a timely privatisation would deliver multiple benefits:
- Improve operational efficiency and encourage healthy competition.
- Eliminate the recurring fiscal burden of refinery maintenance on government finances.
- Attract much-needed private capital and technical expertise.
- Ensure sustainable refinery operations aligned with global best practices.
PETROAN concluded by expressing confidence that a well-executed 2026 budget, built on the pillars of security, community inclusion, regulatory efficiency, and decisive private sector-led refinery reforms, would ultimately strengthen the oil and gas sector, boost government revenue, and support Nigeria's broader sustainable economic development.
