Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s oil marketers and industry experts have declared support for the proposed sale or privatisation of the country’s non-functional refineries under the Nigerian National Petroleum Company Limited (NNPCL), calling it a necessary move to eliminate years of waste and inefficiency.

They believe the long-awaited transition to private sector ownership would open up the downstream sector to competition and ultimately result in more affordable fuel for Nigerians.

The refineries in question, which include Port Harcourt, Warri, and Kaduna, have collectively consumed trillions of naira in rehabilitation funds with minimal results.

The facilities, which have a combined capacity of 445,000 barrels per day, remain largely idle despite massive federal investments.

Bayo Ojulari, NNPC’s Group CEO, admitted during a recent interview at the OPEC International Seminar in Vienna that the company is reassessing its refinery strategy.

He said the facilities have become obsolete, and NNPC is now considering selling them, although a final decision is pending. “Sale is not off the table,” Ojulari confirmed.

Aliko Dangote, President of the Dangote Group, added fuel to the conversation by suggesting the refineries may never become viable again due to longstanding mismanagement.

Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed cautious optimism.

He urged the government to involve all critical stakeholders in any sale process and warned against politicising the effort.

“The privatisation process, if initiated, must be transparent and inclusive. All stakeholders, including MEMAN, DAPPMAN, PETROAN, IPMAN, and NUPENG, should have a seat at the table,” Gillis-Harry said.

Punch reports that the PETROAN boss also criticised the lack of follow-through on past investigative promises into the mismanagement of refinery rehabilitation funds.

Chinedu Ukadike, national publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), echoed similar concerns.

He described the refineries as a financial burden and pointed out that billions spent on turnaround maintenance had yielded no result.

“Repairs are long overdue. But if that’s no longer feasible, then selling them to capable investors is the next best option,” he said, adding that the goal should be to create a competitive refining market.

Energy economist Kelvin Emmanuel warned that any sale must be preceded by investigations into past mismanagement, particularly under Mele Kyari's leadership, Punch quotes him as saying.

“It would be a travesty if EFCC and the AGF ignore this clear case of economic sabotage,” he said.

Reports show that $1.4 billion was allocated for Port Harcourt’s refinery rehab in 2021, with another $897 million and $586 million set aside for Warri and Kaduna, respectively.

Despite these massive investments, the refineries have remained unproductive.

Stakeholders agree that only a transparent and inclusive privatisation process can restore efficiency to Nigeria’s refining sector—and possibly reduce the pump price of petrol for ordinary Nigerians.

Legit.ng earlier reported that Dangote Refinery unveiled bold plans to expand its operations across Africa, beginning with Namibia, as it set its sights on becoming the continent’s leading fuel supplier.

In a recent statement cited by the Daily Sun, Anthony Chiejine, the spokesperson for the Dangote Group, confirmed that the refinery’s expansion is part of a broader vision to industrialise Africa and reduce its dependence on Western energy supplies.

Chiejine said the refinery’s recent success proved it could replicate its model anywhere in Africa.

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Source: Legit.ng