The Organised Private Sector (OPS), major oil marketers, and economic experts have renewed calls for the urgent privatisation of Nigeria’s government-owned refineries. This fresh demand follows the recent shutdowns of the Port Harcourt and Warri refineries just months after they were declared operational by the Nigerian National Petroleum Company Limited (NNPCL).

Despite the high-profile rehabilitation campaign, both Port Harcourt and Warri refineries—reopened with fanfare in late 2023 and early 2024—slid back into dormancy within six months. The Port Harcourt Refining Company, which resumed operations in November 2024, was again shut down in May 2025 for what the NNPC described as a “planned maintenance and sustainability assessment.” Similarly, the Warri refinery ceased operations in January 2025, only a month after it was recommissioned.

The Executive Secretary of the Major Oil Marketers Association of Nigeria (MEMAN), Clement Isong, stressed that continued government ownership and management of the facilities had proven ineffective. He argued that political interference and a public-sector mindset were hampering the refineries’ ability to operate as viable business ventures.

“History has shown that the challenge may be a result of political interference and the perception of the NNPC’s social role. These prevent the company from making the tough decisions that private enterprises take, such as downsizing when necessary,” Isong told PUNCH. He added that professional management and competition with private players like Dangote Refinery were vital to revitalising the sector.

Supporting the privatisation call, Dele Oye, Chairman of the Organised Private Sector of Nigeria, described the government’s continued involvement in refinery operations as counterproductive. “The government has no business being in business. Its role should be that of a policy-maker and facilitator, not a commercial operator,” he said.

Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria, described the failed repair effort as a “painful reminder” of systemic dysfunction. “The $2.5bn spent on turnaround maintenance has yielded no sustainable output. This underscores the need to reform the structure rather than throw money at a broken system,” he stated.

Egbesola warned that any privatisation effort must be transparent, competitive, and free from political capture. “It must attract genuine investors, not political proxies. The objective should be to make these national assets productive rather than a drain on public finances.”

Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise (CPPE), backed these views and proposed a model similar to the Nigeria LNG structure, where private investors own a controlling stake while the government retains minority shares. “Either complete or partial privatisation should be pursued. The key is to let capable hands run the refineries with efficiency and accountability,” he said.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) responded by stating that any decision regarding the sale or commercialisation of the refineries lies with the Federal Executive Council, and not the agency.

Despite repeated inquiries, the NNPC and Ministry of Petroleum Resources have remained silent on the renewed demands for privatisation. However, NNPC spokesperson Olufemi Soneye confirmed in May that the Port Harcourt refinery had undergone a scheduled one-month shutdown for maintenance and performance assessment.

Interestingly, local marketers in Eleme, Rivers State, where the Port Harcourt refinery is located, claimed they had observed no activity within the facility during the stated maintenance period. This has raised further concerns about transparency and the true operational status of the plants.

Compounding the controversy, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) revealed that the revamped refineries were producing mostly naphtha rather than Premium Motor Spirit (PMS), leading members to opt for supplies from alternative sources.

Meanwhile, political figures like former Vice President Atiku Abubakar have used the debacle to renew criticism of the government’s handling of Nigeria’s oil sector. Atiku recalled his repeated calls for the privatisation of the refineries—advice that was dismissed by the Buhari administration, which instead borrowed $1.5bn for refinery repairs.

Atiku had previously described government-run refineries as fiscally irresponsible, citing their inability to produce despite huge personnel costs and capital outlay.

The NNPC in November 2024 had insisted the Port Harcourt refinery was functioning at 70% capacity and producing a mix of diesel, fuel oil, kerosene, and blended petrol through a partnership with Indorama Petrochemicals. However, many stakeholders believe these claims no longer hold, given the facility’s current inactivity and lack of output.

As Nigeria grapples with persistent fuel scarcity and rising import costs, experts argue that privatising these refineries under a transparent, investor-friendly framework could be the only path to restoring their relevance and boosting the nation’s downstream sector.

Unless bold reforms are enacted, observers warn, the refineries may continue to consume billions of dollars in taxpayer funds without delivering the energy security they were intended to guarantee.