LAGOS JULY 4TH (NEWSRANGERS)-Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna face mounting calls for privatization as stakeholders criticize their persistent underperformance despite billions in investments.
The Manufacturers Association of Nigeria (MAN) and oil marketers argue the facilities are a drain on the economy, prompting proposals to sell them to private investors or as scrap to fund modular refineries.
Approximately $3 billion has been spent on revival efforts, including $1.5 billion for Port Harcourt in 2021, $897 million for Warri, and $586 million for Kaduna. Additional spending includes N100 billion in 2021 and $396.33 million for maintenance between 2013 and 2017. Yet, operational setbacks persist. The Port Harcourt refinery, with a 60,000-barrel-per-day capacity, has been offline since May 24, 2025, for maintenance, while Warri shut down a month after reopening in December 2024.
MAN’s Director General, Segun Ajayi-Kadiri, said privatization could curb fraud and enable competition with the Dangote Refinery. Eche Idoko of the Crude Oil Refineries Association of Nigeria suggested selling the refineries as scrap, with the government retaining equity in new modular facilities. Clement Isong, CEO of the Major Energies Marketers Association, called for professional management to counter political interference, while financial experts like Ibrahim Tajudeen of Chapel Hill Denham advocate for Public-Private Partnerships.
The Economic and Financial Crimes Commission is investigating over $7 billion in maintenance spending, including $1.5 billion for Port Harcourt, $740 million for Kaduna, and $657 million for Warri. The probe has led to the dismissal of the refineries’ managing directors. Former President Olusegun Obasanjo, who once supported privatization, noted that Aliko Dangote’s $750 million bid to acquire the refineries was reversed by the late President Umar Yar’adua, with over $2 billion allegedly squandered since.
As Nigeria grapples with its refining crisis, stakeholders urge swift action to transform these assets into viable economic contributors, with debates ongoing over the best path forward.
Port News
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