The Nigerian Association of Petroleum Product Retailers has reiterated its demand for the privatization of Nigeria's four government-controlled refineries, encouraging the federal administration to openly finalize the procedure by the start of 2026.
The organization stated that the prompt privatization of the refineries managed by the Nigerian National Petroleum Company Limited could remove the continuous financial strain on the government, boost operational effectiveness, draw in private investment and specialized knowledge, and bring Nigeria's refining industry into line with international standards.
In a declaration, PETROAN National President Billy Gillis-Harry stated that continuous government financing of the refineries has not produced ideal outcomes over time, leading to the necessity of private-sector-managed operations for the nation to attain energy security and consistency within the downstream oil industry.
Gillis-Harry emphasized that privatization, when done correctly, could promote competition, guarantee stable refining activities, decrease Nigeria's reliance on imported oil products, save foreign currency, and foster employment throughout the supply chain.
PETROAN also connected refinery upgrades with wider industry development, stating that higher local refining capabilities would support current investments in exploration and enhance the nation's general energy perspective.
"PETROAN reiterated its demand for the privatization of Nigeria's four public refineries, urging that the procedure be completed openly by the end of the first quarter of 2026. The group stated that prompt privatization would enhance operational effectiveness, foster competitiveness within the industry, reduce ongoing financial pressures on the government, draw in private investment and specialized knowledge, and guarantee long-term refining activities aligned with international standards," the announcement mentioned.
The group stated assurance that the 2026 budget, built around a crude oil output objective of 1.84 million barrels daily and an oil price standard of $64–65 per barrel, offers a solid foundation for executing major changes, such as the privatization of refineries.
It argued that prompt measures regarding refineries, combined with better protection of oil and gas facilities, successful interaction with local communities as outlined in the Petroleum Industry Act, and well-resourced regulatory bodies, would greatly boost investor trust and industry outcomes.
PETROAN also claimed that effectively privatizing the refineries would release governmental funds for essential sectors like safety and infrastructure, enabling the private industry to promote efficiency and creativity in refining and petrochemical growth.
The group determined that privatizing refineries continues to be essential for ensuring a steady downstream industry and maximizing the advantages of Nigeria's petroleum and natural gas reserves within the 2026 financial plan.
"PETROAN conveyed assurance that a thoroughly executed Nigeria 2026 budget, focused on security, involvement of local communities, effective regulation, engagement from the private sector, and bold changes in the refining industry, will reinforce the petroleum and natural gas sector, improve nationwide energy safety, increase governmental income, and promote long-term economic growth," the declaration ended.
Demands for the privatization of the refineries grew stronger after the closure of the 60,000-barrel-per-day Port Harcourt refinery in May this year, half a year after it had been officially put into operation.
One month following the inauguration of the Warri Refinery by the previous Group Chief Executive Officer of the NNPC, Mele Kyari, in December 2024, it was closed again. The Manufacturers Association of Nigeria stated that these refineries placed a burden on the nation's economy and urged the federal government to divest from them.
According to The PUNCH, the federal government has repeatedly allocated funds to the Port Harcourt, Warri, and Kaduna refineries, which have been non-operational for several years. Information revealed that $1.4 billion was authorized for the restoration of the Port Harcourt refinery in 2021, with $897 million set aside for Warri, and $586 million designated for the Kaduna facility.
Approximately N100 billion was said to have been allocated for refinery upgrades in 2021, at a rate of N8.33 billion per month. Over the period from 2013 to 2017, around $396.33 million was reportedly used for major maintenance operations. However, even with these funding efforts, the refineries continue to operate inefficiently according to the information available up to now.
The newly appointed GCEO of NNPC, Bayo Ojulari, dismissed demands for selling off the refineries, stating his belief that the three facilities would undergo renewal. When the president of the Dangote Group, Alhaji Aliko Dangote, suggested that the state-owned refineries could potentially cease operations permanently, Ojulari responded that the plants would eventually resume functioning.
Ojulari recently mentioned that the company is evaluating the operational and financial feasibility of its three refineries to decide whether to upgrade or adapt them for improved efficiency and profit.
He stated that the current technical and commercial evaluation is a component of an overall strategy aimed at transforming the refineries into environmentally friendly, income-producing facilities capable of satisfying Nigeria's fuel needs and adhering to global operating benchmarks.
He mentioned that the review signifies the start of a new chapter in Nigeria's petroleum refining industry. As per Ojulari, NNPC Limited is presently undergoing the "Technical and Commercial Review" stage, which seeks to evaluate the current condition of all three refineries and decide whether to modernize or adapt the plants for maximum efficiency and lasting viability.
In November, the Nigeria Midstream and Downstream Petroleum Regulatory Authority reported that the NNPC brought in a large amount of gasoline. Traders attributed this mainly to the shutdown of government-run refining facilities.
Supplied by SyndiGate Media Inc. ( Syndigate.info ).
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