By Onu Okorie

Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has begun discussions with indigenous refiners on direct supply arrangements aimed at strengthening domestic availability of petroleum products and reducing Nigeria’s dependence on imported fuels.
The Association made this known after its National President, Dr. Billy Sotubo Gillis-Harry, led a delegation of its national executives on an official inspection and commercial engagement with Azikel Refinery at Obunagha, Yenagoa, Bayelsa State.
The September 29, 2026 engagement focused on assessing the progress of the refinery, examining its refining capacity and product slate, and developing practical avenues for collaboration between the refinery and petroleum products retailers. At the centre of the discussions was a proposed structured offtake arrangement under which PETROAN members would purchase petroleum products directly from Azikel Refinery based on mutually agreed commercial, technical and operational terms.
Gillis-Harry said the initiative was part of PETROAN’s broader strategy to deepen collaboration with indigenous refiners and strengthen the domestic petroleum products supply chain. “As retailers, we want to build practical partnerships with indigenous refineries that can improve product availability, strengthen supply chains and create greater certainty for businesses and consumers,” he said.
According to him, the objective is not merely to secure supplies for PETROAN members but to establish sustainable commercial relationships that are equitable and workable for refiners and marketers. He noted that Nigeria’s long-standing dependence on imported petroleum products has exposed the downstream sector to international market volatility, foreign exchange pressures and supply disruptions.
Gillis-Harry said the emergence of additional domestic refining capacity could provide a pathway towards reducing that exposure, particularly when refiners and organised retailers establish direct commercial relationships.
He explained that direct offtake arrangements could shorten the distance between the refinery and retail forecourts, providing refiners with predictable aggregated demand while giving retailers more dependable access to locally refined products. The Azikel Refinery, according to the Association, has been re-engineered from its original 12,000 barrels-per-day design capacity to a 25,000 barrels-per-day full-slate hydro-skimming facility, following the arrival and installation of its 200-tonne Crude Distillation Unit.
The facility is configured to process crude oil and condensate into Premium Motor Spirit (PMS), automotive gas oil, kerosene, aviation turbine fuel and liquefied petroleum gas.
PETROAN said reports indicate that the project has entered an advanced stage of construction and integration as it moves towards commercial operations. Responding to the delegation, the President and Chief Executive Officer of Azikel Group, Dr. Eruani Azibapu Godbless, welcomed the initiative and affirmed the refinery’s readiness to develop strategic relationships with petroleum products retailers as the facility advances towards commercial operations. Both sides agreed on the need for sustained engagement to resolve the commercial, technical and operational requirements that would determine the proposed offtake arrangement. PETROAN said the planned collaboration was significant because it would potentially create a more predictable domestic market for locally refined products while improving supply reliability for retailers. The Association, however, stressed that its engagement with Azikel represents only one component of a wider strategy to support multiple indigenous refineries and diversify sources of petroleum products supply. PETROAN said concentration of supply in any single source carries risks, arguing that multiple reliable sources, transparent market participation and competition are essential to building a resilient downstream petroleum market. The Association therefore pledged to support credible initiatives capable of expanding Nigeria’s domestic refining capacity, improving competition and strengthening petroleum products security. It added that sustained cooperation among refiners, marketers, regulators and other stakeholders across the downstream value chain would be critical to ensuring efficient distribution and reliable access to locally refined products.