Oil marketers and energy stakeholders have welcomed the Nigerian National Petroleum Company Limited’s (NNPC Ltd) proposed sale of its struggling refineries. They are urging the government to ensure a transparent and inclusive process that involves key players in the downstream sector.
The push for privatisation follows recent comments by NNPC Group CEO, Bayo Ojulari. Speaking at the 9th OPEC International Seminar in Vienna, Ojulari revealed that the company is reviewing its refinery operations. He said “all options are on the table,” including a possible sale, with a final decision expected after the review.
Marketers Urge Competitive and Efficient Refining Framework
Stakeholders argue that selling the Port Harcourt, Warri, and Kaduna refineries could end decades of inefficiency and waste. These refineries have a combined capacity of 445,000 barrels per day. Yet they have consumed trillions of naira in maintenance funds with little to show.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), called privatisation the most reasonable step forward. “Our association recommended this months ago after a detailed review,” he said. However, he cautioned that the process must not be politicised. “Every relevant body—PETROAN, IPMAN, DAPPMAN, MEMAN, NUPENG—must be involved.”
He also criticised the government’s silence on past investigations into failed refinery repairs. “They promised a 30-day review of the Port Harcourt refinery. That deadline expired, yet no report was released. Suddenly, selling becomes the next step?”
Sector Players Demand Reform Over Rhetoric
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), described the refineries as a “burden on public finances.” He said repeated repairs have failed, and asset disposal is the better option.
“These refineries have been idle for over 15 years,” he said. “Running costs now exceed their value. If the government can sell them to private investors and revive them, like Indorama, we support it.”
Ukadike also recalled IPMAN’s call for a state of emergency in the refining sector. He cited the billions spent on turnaround maintenance without success. “We cannot continue investing in failure,” he said.
Experts Urge Strategic Oversight, Not Sentiment
Despite broad support for reform, energy economist Professor Wumi Iledare urged caution. He said any sale must follow the Petroleum Industry Act (PIA) and align with long-term national goals.
“Ownership isn’t the real issue, performance is,” Iledare explained. Under the PIA, NNPC Ltd has the legal right to sell its assets. But the move must be based on strategy, not political pressure.”
Anti-Graft Alarm Bells Ring
Policy analyst Kelvin Emmanuel raised concerns about the lack of accountability in the refinery rehabilitation efforts. In a post on X, he criticised anti-graft agencies for ignoring what he called clear economic sabotage.
“It would be shameful if the Attorney-General and EFCC let former NNPC leadership, under Mele Kyari, walk away without investigation,” Emmanuel said. “Reform without justice will weaken public trust.”
Public records show that between 2021 and 2023, the government approved over $2.8 billion for refinery rehabilitation: $1.4 billion for Port Harcourt, $897 million for Warri, and $586 million for Kaduna. In 2021 alone, ₦100 billion was reportedly spent, including monthly costs of ₦8.33 billion. Yet, none of the refineries are operational today.
As the debate grows louder, stakeholders agree that any decision about Nigeria’s refineries must focus on accountability, reform, and long-term energy security.