Oil marketers and energy sector stakeholders have backed the proposed sale of Nigeria's state-owned refineries managed by the Nigerian National Petroleum Corporation Limited (NNPC Limited), emphasizing the need for transparency, inclusivity, and accountability in the process. They argue that privatizing the Port Harcourt, Warri, and Kaduna refineries, long plagued by inefficiencies despite massive rehabilitation spending, could open the downstream market to competition, improve fuel pricing, and eliminate waste.
This response follows recent remarks by NNPCL's Group CEO, Bayo Ojulari, who told Bloomberg that the company was reconsidering its refinery strategy after ongoing rehabilitation efforts on the 445,000 barrels per day capacity plants failed to yield meaningful progress due to outdated infrastructure. "What we are saying is that sale is not out of the question. All the options are on the table, to be frank. "Ojulari said, noting that a decision would depend on the outcome of internal reviews expected to conclude by year-end.
The same day, Dangote Group President, Aliko Dangote, cast doubt on the viability of reviving the refineries, citing decades of mismanagement. Industry experts agreed that if the sale is managed transparently, it could finally bring an end to years of financial hemorrhage.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), supported privatisation but questioned the timing. "We need to be sure of what is driving this process and understand what is the influence behind it," he said. Gillis-Harry noted PETROAN had long recommended privatisation as the only logical step and urged that any sale must involve grassroots stakelholders.
He warned against politicizing the process and advocated opening the sector to multiple players. “Let the privatisation process, if they ever want to birth it, be done properly, and it should include all stakeholders, MEMAN, DAPPMAN, PETROAN, IPMAN and NUPENG,” he stressed. He also criticised the government’s failure to publish findings from promised investigations into previous rehabilitation efforts, particularly the 30-day ultimatum to revamp the Port Harcourt refinery.
“For us at PETROAN, we do know that the government cannot run this business of refining and make it successful… We are only a group calling for accountability and we hope conversations will be held and answers will be given,” he added.
Similarly, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), described the refineries as a “burden on public finances.” He said they had become non-functional for over 15 years despite heavy financial investments. “The running cost is even higher than what it is earning in revenue or produce,” he lamented.
Ukadike supported the idea of selling the refineries to drive efficiency and competition, akin to the success of Indorama in Eleme. However, he advised against scrapping the assets entirely. “We have advised before that the President should declare a state of emergency in the refining sector. That would yield positive results,” he stated.
He attributed the failure of past rehabilitation efforts to corruption and poor technical management, saying, “At this point, the best option is to sell them.” Using a local proverb, he remarked, “When your dog no longer recognises your members of your family, the owner is advised to sell it for another owner, who might know how to treat it well.”
Energy policy analyst Kelvin Emmanuel also weighed in, urging the Economic and Financial Crimes Commission (EFCC) and the Attorney-General to investigate the immediate past management of NNPCL for economic sabotage. “It will be a travesty if...Mele Kyari [and team] go scot-free without investigation and recommendation for prosecution,” he wrote on X (formerly Twitter).
The Federal Government has invested heavily in the refineries over the years, with little to show. In 2021 alone, $1.4 billion was approved for Port Harcourt’s rehabilitation, $897 million for Warri, and $586 million for Kaduna. That same year, ₦100 billion was allocated for refinery upgrades, and $396.33 million was spent on Turnaround Maintenance between 2013 and 2017, all without producing results.
Professor Wumi Iledare, a petroleum economist, cautioned the government against a rushed or emotionally driven sale. He urged adherence to the Petroleum Industry Act (PIA) 2021 and called for a strategic, national-interest-driven approach. “The core issue is not state ownership but inefficiency caused by poor governance and institutional weaknesses,” he said.
While NNPCL now operates as a commercial entity under the PIA and has the legal right to sell its assets, Iledare argued that long-term planning should guide any sale decision. A hasty move, he warned, could result in further loss rather than gain.
In summary, the proposal to sell Nigeria's refineries has received broad industry backing, but stakeholders demand a transparent, inclusive, and well-regulated process. They caution against political interference, urge follow-through on past probes, and emphasize that competition and private-sector involvement, not continued government control, hold the key to reviving the refining sector.
