The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to channel gains from the current surge in global oil prices into investments in Nigeria’s gas infrastructure.
Dr Billy Gillis-Harry, National President of PETROAN, said this in an interview with the News Agency of Nigeria (NAN) on Sunday while reacting to the implications of the Middle East crisis and rising oil prices for Nigeria.
The remarks come amid renewed tensions in the Middle East, where the ongoing war involving Iran and the combined forces of Israel and the United States has disrupted global energy supply and pushed crude oil prices higher in the international market.
What they are saying
Gillis-Harry said the anticipated windfall from higher oil prices presents an opportunity for Nigeria to invest in long-term energy infrastructure rather than spending the extra revenue immediately.
- “This aligns with my view that excess oil revenue above the budget benchmark should be invested in infrastructure and energy value chains rather than spent immediately,” he said.
He also expressed support for the Federal Government’s push to expand the use of Compressed Natural Gas (CNG) as a cheaper alternative fuel for transportation, describing the ongoing gas revolution initiative as a strategic move to ease pressure on commuters facing rising transport costs.
- “What we should be talking about now is how to provide relief for commuters. The gas revolution being promoted by the government is a step in the right direction,” he said.
Gillis-Harry noted that expanding gas infrastructure would enable petroleum marketers to establish more CNG daughter stations while ensuring the availability of mother stations required for gas supply and distribution across the country.
More insights
Nigeria’s 2026 budget is based on a crude oil benchmark of $64.85 per barrel, but the ongoing geopolitical tensions have pushed global oil prices above $100 per barrel, raising the prospect of additional revenue for oil-producing countries.
- However, the potential gains from higher oil prices could be constrained by Nigeria’s declining production levels.
- According to the latest data from the Organisation of Petroleum Exporting Countries (OPEC), Nigeria’s crude oil production fell by 10.67 percent to 1.31 million barrels per day (bpd) in February 2026.
This comes despite the Federal Government adopting a 2.6 million bpd oil production benchmark for 2026, while using a more conservative 1.8 million bpd estimate for budget planning.
What you should know
The Federal Government has, in recent days, intensified efforts to expand the adoption of CNG as part of measures to cushion the effect of rising petrol prices and promote cheaper energy alternatives for transportation.
Gillis-Harry said PETROAN is well positioned to support the nationwide gasification drive, noting that members of the association operate more than 8,000 filling stations across Nigeria, many of which are located in the Southern and North-Central regions.
- “We are going to pay a courtesy visit to the P-CNGI board to discuss how PETROAN can contribute its quota to ensure that the gasification process succeeds,” he said.
Nairametrics earlier reported that President Bola Tinubu directed the Presidential Initiative on Compressed Natural Gas (PiCNG) to deploy 100,000 vehicle conversion kits nationwide as part of efforts to cushion the impact of soaring petrol prices and expand access to cheaper fuel alternatives.
However, a recent exclusive report by Nairametrics found that the initiative has struggled to meet expectations despite attracting more than $2 billion in private sector investments over the past two years.