Oil marketers and industry stakeholders have expressed strong support for the proposed sale or privatisation of Nigeria’s long-dormant refineries under the management of the Nigerian National Petroleum Company Limited (NNPC Ltd), citing the potential for increased market competition, operational efficiency, and ultimately lower fuel prices for consumers.
Their reactions follow the candid remarks by NNPC’s Group Chief Executive Officer, Mr. Bayo Ojulari, who acknowledged during an interview with Bloomberg at the 9th OPEC International Seminar in Vienna that despite significant investment in refinery rehabilitation, Nigeria’s refineries — Port Harcourt, Warri, and Kaduna — remain largely unproductive due to age and obsolete infrastructure.
Ojulari revealed that a strategic review is currently underway and hinted that the outright sale of the refineries is one of several options under consideration, saying, “Sale is not out of the question… all the options are on the table.”
This signals a potential policy shift in the management of Nigeria’s refining assets, which have consumed trillions of naira in maintenance and rehabilitation costs over the years without resuming full operations. The latest NNPC report indicated that rehabilitation efforts have not met expectations despite a combined capacity of 445,000 barrels per day.
Reacting to the development, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said privatisation is the most logical step forward after years of inefficiency and financial mismanagement. However, he warned that the process must be transparent, inclusive, and free from political manipulation.
“We have long maintained that privatisation of these assets is the best solution. But it must involve key stakeholders — MEMAN, DAPPMAN, PETROAN, IPMAN, and NUPENG. We cannot afford to repeat past mistakes,” Gillis-Harry stated.
He also criticised the government’s failure to act on previous commitments to investigate the misuse of funds earmarked for refinery rehabilitation. “We were promised reports and action, but nothing came of it. Now we’re talking about selling. Nigerians deserve clarity,” he added.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), echoed the support for the sales. He noted that the refineries have become a financial burden with their operating costs outweighing any tangible benefits to the economy.
“Billions have been sunk into these facilities over the past 15 years with no meaningful result. It’s time to find a more productive use for them, just like what was done with Indorama. We need competition in the refining sector to drive down costs and improve supply,” Ukadike said.
He emphasized that selling the refineries could attract more private investors, boost fuel supply, and reduce Nigeria’s dependence on imported petroleum products.
While the support for privatisation is widespread, some experts have cautioned the government against rushing the process. Professor Wumi Iledare, a renowned petroleum economist, urged policymakers to align any sale with the long-term objectives of the Petroleum Industry Act (PIA) 2021.
“Privatisation must not be emotion-driven or reactionary. It must be strategic. The PIA gives NNPC Ltd the autonomy to dispose of its assets, but public interest and national economic priorities must guide the decision,” Iledare warned.
He further highlighted that poor governance and institutional weaknesses — not merely state ownership — are the root causes of the refineries’ failures.
Energy policy analyst Kelvin Emmanuel went a step further, calling for investigations and possible prosecutions of former NNPC management under Mele Kyari for alleged financial mismanagement in the refinery rehabilitation projects.
“It would be a national shame if the EFCC and the Attorney-General allow these individuals to walk free after wasting public resources. Before any sale, we must account for what went wrong,” Emmanuel posted on his official X (formerly Twitter) handle.
The Federal Government has invested heavily in the refineries in recent years, with $1.4 billion approved for Port Harcourt refinery in 2021, $897 million for Warri, and $586 million for Kaduna. Additionally, over N100 billion was reportedly spent on maintenance that yielded no output. Between 2013 and 2017 alone, $396.33 million was allocated to turnaround maintenance efforts — with zero production to show for it.
The consensus among marketers and experts is clear: privatising Nigeria’s refineries — if done properly — could unlock significant value, reduce fiscal losses, and finally provide a pathway to affordable fuel for Nigerians. However, they insist the process must not repeat the errors of the past or be hijacked for political ends.
Stakeholders recommend that any privatisation be backed by clear governance frameworks, stakeholder engagement, and regulatory oversight under the PIA to ensure long-term national interest.