Veteran petroleum economist, Professor Wumi Iledare, has cautioned the Nigerian government against hastily selling the country’s three state-owned refineries in Port Harcourt, Warri, and Kaduna, saying doing so without careful planning could backfire.

Speaking through a weekend statement, Iledare advised President Bola Tinubu and the leadership of the Nigerian National Petroleum Company Limited (NNPCL) to adopt a more calculated and transparent approach that aligns with national interest.

His comments come in response to recent remarks by NNPCL’s Group CEO, Bayo Ojulari, who suggested in an interview with Bloomberg that the refineries may be sold after ongoing evaluations are completed.

Iledare, however, believes the problem isn’t who owns the refineries, but how they’re run. “Inefficiency, not ownership, is the real issue,” he said, warning that rushing into privatization without fixing the underlying structural issues could lead to more problems, including threats to Nigeria’s energy security.

He recommended that the government consider hybrid solutions like public-private partnerships or performance-based concessions, which would align with the goals of the Petroleum Industry Act (PIA) of 2021. According to him, true reform should promote transparency and competition—not simply transfer assets to a few powerful interests.

“Privatization must not translate into monopoly or elite capture,” he stressed. “The aim should be to add real value to the downstream sector and build a more sustainable energy future.”

His remarks come amid continued shutdowns and delays in rehabilitating Nigeria’s refineries. The Port Harcourt plant was taken offline for maintenance in May, while the Warri and Kaduna facilities remain inactive despite years of investment.

Adding to the debate, Aliko Dangote recently cast doubt on the viability of reviving the NNPCL refineries, saying they may never function again.