The Federal Government has revealed plans to privatise Nigeria’s four state-owned refineries in Port Harcourt, Warri, and Kaduna as part of its oil sector reforms.
Sunday Dare, Special Adviser on Media to President Bola Tinubu, announced the development on his X (formerly Twitter) handle, stating: “Local oil refining and production will peak steadily with Dangote and modular refineries active. With full local refining capacity, fuel queues will end.”
“Follow Petroleum Industry Act,” Expert Advises Government
Prof. Wumi Iledare, an expert in Petroleum Economics, cautioned the government to adhere to the Petroleum Industry Act (PIA) when implementing the privatisation.
He argued that decisions regarding the refineries should be made by the Nigerian National Petroleum Company Limited (NNPCL) board, not politicians.
“The buyers’ capacity to manage and operate the refineries effectively is critical,” Iledare said, emphasising the need for due diligence.
Industry Leaders Endorse Privatisation
11Plc Managing Director Tunji Oyebanji welcomed the move, saying, “Privatisation will lead to better outcomes if handled by competent firms.”
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, suggested adopting the Nigeria Liquefied Natural Gas (NLNG) model, with private investors holding majority stakes to ensure efficiency.
PENGASSAN Advocates for Public-Private Partnership
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) expressed reservations about the privatisation process.
General Secretary Lumumba Okugbawa stated, “We prefer the NLNG model, with a 49-51 per cent ownership split between the government and private investors.”
Nigeria’s Refinery Capacity Under Review
The nation’s four refineries have a combined installed capacity of 445,000 barrels per day.
However, inefficiencies and mismanagement have left them underperforming.
The NNPCL has already invited private firms to operate and maintain the Warri and Kaduna refineries.
With privatisation plans underway, stakeholders remain divided on the best approach to revive Nigeria’s refining sector while ensuring energy security and economic growth.
