KEY POINTS
- PETROAN urged the Federal Government to invest excess oil revenue from rising global prices in Nigeria’s gas infrastructure.
- The association supports the expansion of CNG as a cheaper fuel alternative to ease transportation costs for commuters.
- Nigeria could earn more from high oil prices, but declining crude production may limit the potential revenue gains.
The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has called on the Federal Government to channel potential gains from rising global oil prices into the development of Nigeria’s gas infrastructure.
The National President of PETROAN, Billy Gillis-Harry, made the call during an interview with the News Agency of Nigeria (NAN) on Sunday. His remarks come amid renewed geopolitical tensions in the Middle East involving Iran, Israel, and the United States, which have disrupted global energy supply and driven crude oil prices above $100 per barrel in the international market.
Use Oil Windfall for Long-Term Energy Investments
Gillis-Harry noted that Nigeria stands to benefit from the spike in oil prices but warned that the government should avoid spending the extra revenue immediately.
According to him, any excess earnings above the government’s budget benchmark should instead be invested in strategic infrastructure and energy value chains that can deliver long-term benefits to the economy.
He emphasised that such investments would strengthen Nigeria’s energy security and reduce reliance on volatile global oil markets.
The PETROAN president also expressed strong support for the Federal Government’s push to expand the use of Compressed Natural Gas (CNG) as a cheaper fuel alternative for transportation.
He described the government’s gas revolution initiative as a strategic policy that could ease the burden of rising transportation costs on commuters.
Gillis-Harry explained that expanding gas infrastructure would enable petroleum marketers to establish more CNG daughter stations while ensuring the availability of mother stations needed for effective supply and distribution across the country.
Nigeria’s 2026 budget was prepared using a crude oil benchmark price of $64.85 per barrel. However, the escalation of geopolitical tensions has pushed global oil prices above $100 per barrel, potentially creating additional revenue for oil-exporting countries.
Despite this opportunity, Nigeria’s earnings could be affected by declining crude production. Data from the Organisation of the Petroleum Exporting Countries (OPEC) shows that Nigeria’s crude output dropped by 10.67 percent to about 1.31 million barrels per day in February 2026.
