Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The Organized Private Sector and oil marketers have demanded the quick privatization of the Port Harcourt and Warri refineries after the apparently poorly executed renovations caused both plants to squander over $2.4 billion and go back into hibernation within six months of opening.

Officials from the Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation Limited remained silent in response to the OPS's most recent call. However, the regulatory body for the midstream and downstream segments of the oil industry stated that the privatisation of these plants would only take place with approval from the Federal Executive Council.

The suspension of the 60,000 barrels per day Port Harcourt Refining Company, six months after it was declared operational, heightened calls for the privatisation of government-owned refineries managed by NNPCL.

The Warri Refining and Petrochemical Company was shut down in January, just one month after it was deemed operational, according to The PUNCH. Up to $2.4 billion was reportedly spent by the federal government on the facilities' turnaround repairs.

Clement Isong, MEMAN's Executive Secretary and Chief Executive Officer, stated in an interview with The PUNCH that MEMAN had repeatedly asked for the facilities to be turned over to qualified refinery managers.

Isong claimed that Nigeria required the refineries in order to prevent relying on just one source for fuel supply or distribution, and that healthy competition with the Dangote Petroleum Refinery was necessary.

“I have been consistent. We need those refineries. We need them to work. And we have been consistent in proposing that the refineries be handed over to professional refinery managers, whether with or without a stake, in order to ensure that there is some competition with Dangote. We think that competition is always important in the sector,” Isong said.

Isong went on to say that the government's incapacity to control its economic climate and expenses is also having an impact on the refineries. The private sector has consistently done better than government-owned businesses, he emphasised.

Isong added that since Aliko Dangote is operating a private company, no one should bother him.

“There is also the inability of the government to manage its economic environment and costs. The private sector, historically, in every geography, has done better. Government-owned corporations struggle because of their perceived social role. The private sector is much better at managing these decision-making processes simply because stakeholders understand that they are privately owned.

“Stakeholders behave differently when they know you’re government-owned; they challenge you differently. But if you’re private, nobody can harass you. Nobody can harass Dangote; he’s running his business; it’s his pocket,” he stated.

Dele Oye, the Chairman of the Organized Private Sector of Nigeria, told one of our correspondents that the refineries' privatization was long overdue. According to Oye, given its track record, the government shouldn't be involved in corporate operations.

Instead, the head of OPS stated that the private sector should be the basis for government policy and legislation.

“The privatisation of government refineries is long overdue. The government has no business in business, judging by its performance in business. They should be making policies and laws based on the private sector’s advice and input,” he stressed.

He stated that the government should continue to play the role of a regulator and facilitator, and that the government's involvement in managing the refineries was not beneficial to either the government or the general population.

Legit.ng reported that the Port Harcourt Refinery, located in Alesa-Eleme, in the Eleme local government area of Rivers State, has begun restoration work.

LEADERSHIP was informed by a source close to the NNPCL that the facility’s rehabilitation work officially began on Monday, June 2, 2025.

The management of Port Harcourt Refining Company Limited (PHRC) has cautioned its employees against answering questions from the media regarding the closure of the former refinery plant and anything related to the restoration efforts.

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Source: Legit.ng