Oil marketers and energy stakeholders have expressed support for the proposed sale or privatisation of Nigeria’s struggling refineries, urging the Nigerian National Petroleum Company Limited (NNPC Ltd) to ensure the process is transparent and inclusive.
The renewed interest in selling the refineries comes after NNPC’s Group Chief Executive Officer, Bayo Ojulari, revealed that ongoing efforts to revive the Port Harcourt, Warri, and Kaduna plants have not delivered the expected results. Speaking during an interview in Vienna at the recent OPEC seminar, Ojulari said the company is reviewing its refinery strategy and could consider a sale depending on the outcome of the ongoing evaluation.
The three refineries, with a combined capacity of 445,000 barrels per day, have received significant government funding over the years with little or no improvement. Stakeholders argue that privatisation may finally open the sector to healthy competition, enhance pricing, and put an end to persistent inefficiencies.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said privatising the refineries is a practical step, but raised concerns about the timing and lack of progress on earlier government investigations into past rehabilitation projects. He stressed that all relevant stakeholders, such as PETROAN, DAPPMAN, MEMAN, IPMAN, and NUPENG should be involved in any discussions to ensure transparency.
He also criticized the federal government for failing to follow through on its earlier promises to probe how funds allocated to refinery repairs were spent, warning that moving ahead with a sale without those answers could further erode public trust.
IPMAN’s spokesperson, Chinedu Ukadike, also backed the idea of privatisation, calling the refineries a financial burden due to years of poor management. While he disagreed with scrapping the plants entirely, he said the government must make a clear and effective decision—either sell or fix the refineries—because continuing in the current state is no longer sustainable.
He noted that despite huge amounts of money spent on turnaround maintenance, the facilities remain dormant. Declaring a state of emergency in the refining sector, he suggested, could help tackle the deep-rooted issues.
Energy policy expert Kelvin Emmanuel went a step further, insisting that top officials in previous NNPC administrations should be investigated for what he called “economic sabotage.” He said selling the refineries without addressing corruption and mismanagement would be a serious failure of accountability.
Figures show that the government spent billions of dollars on the refineries in recent years, including $1.4 billion for Port Harcourt, $897 million for Warri, and $586 million for Kaduna. Yet, none of the facilities have returned to full operation.
Petroleum economist Professor Wumi Iledare advised caution, stating that while privatisation may be a valid solution, it should not be rushed or politically motivated. He urged the government to align any sale with the Petroleum Industry Act and long-term national interests. He added that the refineries’ failure stems more from poor institutional oversight than from public ownership alone.
