Oil marketers, represented by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have urged the federal government and other stakeholders to establish the Energy Bank of Nigeria (EBN) to support investments in the downstream oil sector, including refineries.
Dr. Billy Gillis-Harry, the National President of PETROAN, emphasized the importance of the proposed energy bank, suggesting that it should be funded with a minimum of $15 billion to address funding gaps in the oil and gas industry. He highlighted the potential benefits of such an institution in facilitating projects that contribute to the country’s economic development, particularly in the petroleum downstream and midstream sectors.
Gillis-Harry disclosed that PETROAN is in discussions with foreign oil refiners from the United States, Kazakhstan, and Asia to collaborate on building a new refinery in Nigeria. He indicated that the federal government is expected to provide support for the project through sovereign guarantees.
The establishment of the Energy Bank of Nigeria is seen as crucial for boosting investor confidence and attracting foreign investments in the country’s oil and gas sector. Gillis-Harry emphasized that the bank would serve as a local institution to safeguard investments and provide financial support for productive projects.
The PETROAN president highlighted the challenges faced by oil marketers in accessing funding for refinery projects, citing the substantial capital outlay required for such ventures. He underscored the need for government support, including sovereign guarantees, to facilitate partnerships with foreign investors and ensure the viability of refinery projects.
In addition to advocating for the energy bank, PETROAN is collaborating with other industry associations and stakeholders to advance initiatives aimed at enhancing the downstream oil sector’s productivity and contributing to national development. Gillis-Harry emphasized that the proposed refinery project is a collective effort involving various stakeholders committed to addressing the country’s energy needs and promoting economic growth.
