The Manufacturers Association of Nigeria (MAN) has urged the federal government to privatise all state-owned refineries, Port Harcourt, Warri, Kaduna, and the second Port Harcourt unit, arguing that the private sector is better equipped to manage them efficiently and ensure energy security.
Segun Ajayi-Kadir, MAN’s Director-General, highlighted the Dangote Refinery’s performance as proof that government-run refineries are ineffective. He pointed out that energy costs make up over 40% of manufacturing expenses, and improved local refining could significantly reduce production costs.
Oil marketers and industry groups, including the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association (IPMAN), have echoed this call.
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They argue that state-owned refineries have consumed trillions of naira with little to no output, making privatisation the only viable path .
NNPC’s Group CEO, Bayo Ojulari, confirmed that the company is reviewing its refining strategy and has not ruled out privatisation following extensive but unfruitful rehabilitation efforts. Industry leaders like Dangote have expressed doubt that the ageing facilities can ever function effectively .
Concerns remain about transparency, stakeholder engagement, and regulatory oversight during the privatisation process. PETROAN urges inclusive consultation, while energy economist Kelvin Emmanuel warns against overlooking past mismanagement and corruption without proper accountability measures.
Privatisation options under consideration include complete sale, public-private partnerships (PPP), or partial divestments to strategic investors. Supporters say this would not only stimulate competition and operational efficiency but also reduce chronic fuel shortages and costly import dependency.
