The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has strongly criticised the Nigerian National Petroleum Company Limited (NNPCL) for its decision to retain control of the Port Harcourt Refining Company (PHRC), describing the move as a setback for Nigeria’s energy reforms.
In a statement issued on Thursday, PETROAN’s National President and spokesperson, Dr. Joseph ObeleL, expressed the association’s deep disappointment over NNPCL’s reversal of its earlier consideration to privatise all three of Nigeria’s major refineries — Port Harcourt, Warri, and Kaduna. He called on President Bola Ahmed Tinubu to urgently intervene by approving the full privatisation of the Port Harcourt refinery, stressing that government ownership has long proven ineffective.
“This isn’t good news at all,” Obele stated. “While the NNPCL is considering privatising Warri and Kaduna refineries, it wants to retain Port Harcourt Refining Company under its control. This raises serious concerns about favouritism, transparency, and future performance. NNPCL’s history is riddled with inefficiencies, bureaucratic bottlenecks, and corruption.”
According to PETROAN, continued state ownership of PHRC will not solve Nigeria’s recurring fuel crises, which have been exacerbated by refinery underperformance and import dependency. Obele noted that the decades of mismanagement by state-run oil institutions have led to widespread fuel scarcity, soaring pump prices, economic instability, and job losses across the downstream oil sector.
Obele insisted that privatising the Port Harcourt refinery — and the other refineries — would attract local and foreign investors, inject capital, and bring in world-class expertise. “Privatisation is not about selling national assets to cronies, it is about freeing the sector from state inefficiency. With private ownership comes accountability, innovation, and results. The Nigerian public deserves better fuel supply and better prices,” he said.
He further argued that a functioning, privately-managed Port Harcourt refinery would boost job creation, reduce Nigeria’s fuel import bill, and support broader macroeconomic growth. “NNPCL must focus on regulation and oversight, not operational ownership. We can’t afford another decade of fuel queues and inflated subsidies,” Obele added.
The controversy follows a recent town hall meeting at the NNPCL headquarters in Abuja, where the Group Chief Executive Officer, Mr. Bayo Ojulari, disclosed the company’s decision to retain the Port Harcourt refinery. He said the decision was based on a comprehensive technical and financial review, and not a reversal of policy.
“NNPCL has officially ruled out the sale of the Port Harcourt Refining Company,” Ojulari stated. “Our priority is to complete the ongoing high-grade rehabilitation and ensure sustainable operations going forward.”
Ojulari, who in June hinted at the possibility of selling all three refineries, clarified that the new decision emerged from internal assessments on the complexities of repair projects and national interest considerations. He assured stakeholders that the rehabilitation process would deliver long-term value, and that the Kaduna and Warri refineries may still be offered to investors in due course.
While PETROAN has been vocal in its opposition, other stakeholders in the oil and gas industry have adopted a wait-and-see approach. Some experts argue that hasty privatisation without proper regulatory frameworks could lead to monopolies and inefficiencies, while others support the call for total sector liberalisation.
Energy analyst Damilare Hassan told Vanguard: “The NNPCL has not built public confidence over the years, and its continued control of strategic assets raises legitimate concerns. However, privatisation must be done transparently and competitively — not behind closed doors.”
As Nigeria battles persistent fuel supply challenges, calls for reform in the downstream sector are growing louder. With the Dangote Refinery expected to commence full operations before the end of 2025, analysts say competition and efficiency in the sector are likely to intensify.
PETROAN’s criticism underscores the enduring debate over the role of government in Nigeria’s petroleum industry. As the Tinubu administration pushes forward with economic reforms and subsidy removal, the spotlight is once again on NNPCL’s ability — or failure — to adapt to global standards of transparency and competitiveness. The question remains: Will retaining the Port Harcourt Refinery under public control deliver results, or will history repeat itself?