The Organised Private Sector (OPS) and oil marketers have called for the immediate privatization of Nigeria’s state-owned refineries following the collapse of the $2.4 billion rehabilitation projects at the Port Harcourt and Warri plants, which resumed operations briefly before shutting down again.
### **Failed Turnaround Maintenance**
The Port Harcourt Refinery (60,000 barrels per day) was declared operational in December 2024 but ceased production within six months. Similarly, the Warri Refinery, revived in January 2025, halted operations barely a month later. The Federal Government had invested approximately $2.4 billion in refurbishing both facilities under the Nigerian National Petroleum Company Limited (NNPCL).
Industry stakeholders now argue that continued government management is unsustainable, citing inefficiency and political interference.
### **Private Sector Calls for Privatization**
**Clement Isong**, CEO of the Major Energies Marketers Association of Nigeria (MEMAN), emphasized the need for professional refinery operators to take over the plants to foster competition with the Dangote Refinery.
*”We have consistently proposed handing these refineries to private managers—with or without government stakes—to ensure efficiency and competition,”* Isong told *The PUNCH*. *”NNPCL struggles with political interference and social obligations, unlike private firms that prioritize optimal staffing and cost management.”*
He noted that private enterprises, like Dangote’s refinery, operate without bureaucratic constraints, enabling better decision-making.
**Dele Oye**, Chairman of the OPS, stated that privatization was long overdue. *”The government has no business running refineries given its poor track record. Its role should be policymaking, not operations,”* he asserted.
**Dr. Femi Egbesola**, President of the Association of Small Business Owners of Nigeria (ASBON), described the refinery failures as a *”systemic public-sector collapse.”*
*”Spending $2.5bn on maintenance only for another shutdown shows that funding alone won’t fix structural flaws. Privatization, if transparent, can replicate Dangote’s success,”* he said.
**Government’s Silence and Regulatory Hurdles**
While the Nigerian Midstream and Downstream Petroleum Regulatory Authority acknowledged that privatization requires Federal Executive Council approval, NNPCL and the Petroleum Ministry remained silent on the OPS’s demands.
**Broader Implications**
The Centre for Promotion of Private Enterprise (CPPE) backed the privatization push, noting that Nigeria has *”not seen value for money”* in government-led refinery projects. Analysts warn that retaining state control risks further financial losses and perpetuates fuel import dependency.
**What’s Next?**
With the Dangote Refinery already operational, pressure is mounting on the government to cede control of its refineries to private investors. A transparent privatization process could attract competent operators, revive domestic refining, and reduce reliance on imported fuel.
For now, stakeholders await an official response from the Federal Government on whether it will heed the private sector’s call or persist with its costly maintenance model.
