Oil marketers and industry stakeholders have expressed support for the proposed sale or privatisation of Nigeria’s three major refineries Port Harcourt, Warri, and Kaduna managed by the Nigerian National Petroleum Company Limited (NNPCL).
They argue that transparent and inclusive privatisation could end decades of waste, drive competition, and lower fuel prices.
Their backing follows recent comments by NNPCL Group CEO, Bayo Ojulari, who acknowledged in a Bloomberg interview that rehabilitation efforts for the 445,000 bpd facilities have not delivered expected results due to their obsolete infrastructure.
Ojulari hinted that while a sale is not confirmed, “all options are on the table” as the company reassesses its strategy, with conclusions expected by year-end.
Privatisation Seen as Logical Step
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said privatisation is long overdue, noting that government-led refinery management has historically failed. However, he urged clarity, transparency, and stakeholder involvement.
“We advised months ago that selling off the refineries is the best option. But the process must not be politicised. All key stakeholders MEMAN, DAPPMAN, IPMAN, NUPENG must be involved,” he said.
Gillis-Harry also expressed frustration with the government’s unfulfilled promises, particularly regarding investigations into past rehabilitation efforts and the now-lapsed 30-day ultimatum on Port Harcourt refinery repairs.
“There’s no transparency on the outcome of those probes. Suddenly, selling is now on the table. We need accountability,” he said.
A Long History of Failures and Costs
The refineries have consumed vast public funds with little to show. Between 2013 and 2017, over $396 million was spent on turnaround maintenance.
In 2021 alone, $1.4 billion was approved for Port Harcourt, $897 million for Warri, and $586 million for Kaduna. Despite this, the plants remain non-functional.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), called the refineries a “drain on national resources” and said they should be sold but not scrapped.
“They’ve become economically unviable. Billions spent have yielded nothing. If selling to a private operator helps revive them, we support it,” he said.
Call for Accountability Before Sale
Energy economist Kelvin Emmanuel criticized the government’s failure to hold past NNPCL management accountable. He said any sale without investigating previous mismanagement would be “a travesty.”
He called on the Attorney-General and EFCC to probe the former leadership, particularly under Mele Kyari, citing gross financial mismanagement and economic sabotage.
Expert Cautions Against Rushed Sale
Professor Wumi Iledare, a petroleum economist, urged a strategic and transparent sale aligned with the Petroleum Industry Act (PIA) 2021. He emphasized that inefficiency not ownership was the core issue.
“NNPCL has the legal right to sell, but the process must prioritize national interest, not quick fixes,” he warned.
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