ABUJA –
Prominent oil marketers and industry stakeholders have thrown their support behind the proposed sale of Nigeria’s state-owned refineries — Port Harcourt, Warri, and Kaduna — calling for transparency, accountability, and stakeholder inclusion in the process.
The move follows the Nigerian National Petroleum Company Limited (NNPCL) announcement that it is currently reassessing its refinery strategy after years of unproductive rehabilitation efforts.
🛢 Refineries Deemed Financial Sinkholes
Speaking with Bloomberg during the OPEC International Seminar in Vienna, NNPCL Group CEO Bayo Ojulari revealed that the 445,000 barrels per day refineries remain obsolete and unviable despite massive government spending.
“Sale is not out of the question. All options are on the table,” Ojulari stated.
This revelation came on the same day billionaire industrialist Aliko Dangote questioned the viability of reviving the refineries, citing years of mismanagement.
💬 Stakeholders Back Sale with Caveats
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said the privatisation of the refineries is a step in the right direction, but warned that the process must not be politicised.
“Privatisation is the best option. But let it be inclusive — involving PETROAN, IPMAN, DAPPMAN, MEMAN, and NUPENG,” he stated in an interview with Naija Blog Daily.
Gillis-Harry also expressed concern over the government’s failure to release reports on previous refinery investigations, including the 30-day review timeline announced for the Port Harcourt refinery, which has since elapsed without updates.
🔥 IPMAN: Refineries a Burden, Not an Asset
Chinedu Ukadike, Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), described the refineries as financial liabilities, noting that billions spent on Turnaround Maintenance (TAM) yielded no meaningful result.
“Selling the refineries, not scrapping them, is the logical next step. We once called for a state of emergency in the refining sector — it is long overdue.”
⚖ Calls for Prosecution Over Mismanagement
Energy policy expert Kelvin Emmanuel demanded investigations into the previous NNPC management led by Mele Kyari, calling the years of non-performance and fund misappropriation “economic sabotage.”
“It will be a travesty if those responsible are not investigated and prosecuted,” he wrote on X (formerly Twitter).
📉 Billions Spent, Zero Results
Naija Blog Daily can confirm that despite:
- $1.4 billion approved for Port Harcourt in 2021
- $897 million for Warri
- $586 million for Kaduna
…none of the refineries is currently operational. Between 2013 and 2017 alone, $396.33 million was spent on TAM. In 2021, ₦100 billion was allocated, with ₦8.33 billion in monthly spending.
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🧠 Expert Advice: Don’t Rush the Sale
Renowned petroleum economist, Professor Wumi Iledare, cautioned against a hasty sale and advised a strategic, long-term view.
“Under the Petroleum Industry Act (PIA) 2021, NNPCL has the legal right to sell, but the process must align with Nigeria’s long-term interest,” Iledare said.
He added that poor institutional governance, not state ownership, is the root cause of the refineries’ failures.
📌 Stay tuned to Naija Blog Daily for real-time updates on refinery reform, downstream oil policy, and fuel price trends across Nigeria.
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