Oil marketers and industry stakeholders have voiced support for the proposed sale of Nigeria’s state-owned refineries, stressing the need for a transparent, inclusive, and accountable process.
The refineries—Port Harcourt, Warri, and Kaduna—have consumed trillions of naira in rehabilitation efforts over the years with little to show for it. The move, they argue, could finally end a cycle of inefficiency and fiscal waste in the downstream petroleum sector.
Their endorsement follows recent remarks by the Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPC Ltd), Bayo Ojulari.
Speaking at the 9th OPEC International Seminar in Vienna, Ojulari admitted that ongoing rehabilitation work at the three refineries, with a combined capacity of 445,000 barrels per day, had not achieved expected results. He cited outdated infrastructure as a major hindrance and revealed that a strategic reassessment is underway, with conclusions expected by year-end.
Coincidentally, industrialist Aliko Dangote, whose company now runs Africa’s largest refinery, also questioned the viability of the state-run facilities, attributing their disrepair to years of mismanagement. His statement further amplified the urgency for a lasting solution. Stakeholders now believe that privatisation may offer a path forward by inviting competition and removing bureaucratic constraints that have crippled refinery operations.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), welcomed the idea of divestment, but insisted on clarity of intent and broad stakeholder involvement.
“We had evaluated this long before now and came to the conclusion that privatisation is the only sensible route,” he said. “But we must understand the drivers of this sudden interest and ensure it is not politically motivated.”
Gillis-Harry highlighted the association’s past recommendations on refinery reform, lamenting that previous government promises, including a 30-day ultimatum to revive the Port Harcourt refinery, had gone unanswered.
“The results of that directive were never made public. And now, selling the refineries is being rushed in without feedback. This reflects a lack of seriousness in our public enterprise management,” he added.
He warned that any sale conducted without input from major industry groups would lack credibility. “Let it be clear: PETROAN, MEMAN, DAPPMAN, IPMAN, and NUPENG must all be carried along. This is not the time for closed-door decisions,” he stated. According to him, openness in the divestment process will encourage new entrants and foster price efficiency through competition.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), also expressed frustration at the billions already spent on refinery maintenance with no visible outcome. He said IPMAN had earlier urged the government to declare a state of emergency in the refining sector, noting that the time for decisive action is long overdue.
Ukadike argued that the refineries have become a financial burden, generating more cost than value. “The operating expenses of these facilities outweigh their revenue,” he said. While he opposed scrapping the assets, he acknowledged that their condition had deteriorated so badly that immediate private-sector intervention was essential.
“There’s no harm in attempting repairs,” he explained, “but when corruption and incompetence consume billions of naira with nothing to show for it, then privatisation becomes the only logical step.” Ukadike used a local proverb to underscore his point: “When your dog no longer recognises your family, you sell it to someone who might treat it better.”
Energy economist and policy commentator Kelvin Emmanuel raised concerns about unresolved issues of corruption. In a strongly worded post on X, he called for accountability from former NNPC leadership, especially under Mele Kyari. “It would be a travesty for the Attorney-General and the EFCC to let this pass without investigation,” he said, calling it a clear case of economic sabotage.
He stressed that selling the refineries without addressing these legacy issues would amount to rewarding negligence. According to him, reform must be coupled with justice to ensure that future managers of public assets are held to higher standards of transparency and fiscal discipline.
Government records show that over $2.8 billion has been approved in recent years for the refurbishment of the three refineries—$1.4 billion for Port Harcourt, $897 million for Warri, and $586 million for Kaduna. In 2021 alone, N100 billion was reportedly spent on rehabilitation, with an additional monthly expenditure of N8.33 billion. Despite these allocations, the refineries remain idle.
Between 2013 and 2017, another $396.33 million was disbursed for Turnaround Maintenance. Yet, none of the refineries has come back to full operation. These repeated cycles of investment without results have fueled widespread calls for reform and skepticism about future government-led rehabilitation efforts.
Professor Wumi Iledare, a respected petroleum economist, urged caution. While acknowledging NNPC’s legal right to sell its assets under the Petroleum Industry Act (PIA) 2021, he warned against rushing into a sale driven by political or short-term financial motives. “The problem isn’t state ownership per se,” he explained. “It’s about the systemic inefficiencies that have plagued governance in the sector.”
He advised that any privatisation plan must align with the broader goals of the PIA and serve Nigeria’s long-term energy interests. According to Iledare, the restructuring must be guided by transparent procedures, competitive bidding, and rigorous regulatory oversight to restore confidence and unlock the true value of the nation’s refining assets.
As discussions around the proposed sale continue, stakeholders agree on one point: the status quo is no longer sustainable. Whether through sale, concession, or full privatisation, they insist that any future involving Nigeria’s refineries must break free from the costly cycle of neglect, corruption, and inefficiency that has defined the past two decades.
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