The Petroleum Product Retail Outlet Owners Association of Nigeria (PETROAN) has clarified that the N100 billion intervention request submitted to President Bola Ahmed Tinubu’s administration is not a grant or free money but a strategic investment aimed at stabilizing the country’s energy sector.
The intervention is expected to play a critical role in preventing the collapse of the petroleum retail industry, which faces significant operational challenges.
This explanation was provided by the National President of PETROAN, Billy Gillis-Harry, during an interview with Newsmen
He emphasized that the proposed N100 billion would be deposited into an energy bank, which would provide single-digit interest loans to petroleum product dealers across the country.
According to him, this approach will ease the financial burden on retail operators and ensure a steady supply of petroleum products to Nigerians.
Gillis-Harry highlighted that the high-interest rates charged by commercial banks have made it increasingly difficult for fuel retailers to sustain their operations.
These financial pressures, he noted, have contributed to rising fuel prices and have put the stability of the energy sector at risk. By contrast, the intervention fund, if approved, would provide an affordable financing alternative for dealers and help reduce the cost of Premium Motor Spirit (PMS), commonly known as petrol.
“Today, you can see us asking the government to give us N100 billion as seed capital for the energy bank,” Gillis-Harry stated. “We didn’t say they should give us free money.
We said, ‘Put it in the energy bank and give it to us as a single-digit interest loan.’ With that, the fuel price will come down.”
He stressed that the establishment of an energy bank with the N100 billion seed fund would significantly impact the petroleum retail business, making operations more sustainable and affordable for stakeholders.
“We are only saying that the government should put the grant in Nigeria’s energy bank. Set up the energy bank of Nigeria and put the N100 billion there as seed capital. N100 billion is nothing, but it’s going to change the content of the business,” he added.
The PETROAN President expressed confidence that the intervention fund would help reduce the current price of petrol, which ranges between N935 and N1,100 per litre in various parts of the country.
He argued that lowering the cost of loans for petroleum dealers would result in savings being passed on to consumers.
Furthermore, Gillis-Harry urged the government to act swiftly in approving the fund, noting that delays could worsen the already precarious situation of the energy sector.
The intervention, he said, is not only a lifeline for petrol dealers but also a necessary step toward achieving economic stability and ensuring affordability for the general populace.
The proposed energy bank, as envisioned by PETROAN, would serve as a dedicated financial institution for the energy sector, offering customized financial solutions tailored to the unique needs of industry stakeholders. Such a bank, backed by government seed funding, would also help address long-term challenges in the energy market, including supply chain inefficiencies and price volatility.
As Nigeria grapples with the dual challenges of rising fuel prices and economic pressures, the PETROAN intervention proposal represents a practical solution to ease the burden on both industry players and consumers. With the current administration’s approval, the initiative could pave the way for a more stable and sustainable energy sector, ensuring that Nigerians have access to affordable petroleum products.
The association remains hopeful that the federal government will consider the request favorably and implement the necessary measures to support the sector’s recovery and growth.
