Ajayi-Kadiri Advocates Sale of Nigeria’s Four Refineries

By Adedapo Adesanya

The Director General of the Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadiri, has urged the federal government to fully privatise the country’s state-owned refineries.

Nigeria has four crude oil refineries, all owned and managed by the Nigerian National Petroleum Company (NNPC) Limited. These oil facilities have long struggled with underperformance, inefficiency, and maintenance issues.

The MAN DG regarded the infrastructure as a “pure drain on the Nigerian economy,” and argued that the government should hand over the Port Harcourt, Warri, and Kaduna refineries to the private sector for efficient management and productivity.

“If you ask me, the government should just sell these refineries. Give them to private sector people who will run them efficiently and be able to deliver. When something belongs to everybody, it belongs to nobody,” Mr Ajayi-Kadiri said on Channels Television’s Politics Today on Tuesday.

The federal government began efforts in 2024 to revive its four state-owned refineries, with the old Port Harcourt and Warri refineries partially restored, while rehabilitation continues on the second Port Harcourt unit and the Kaduna refinery.

Despite the claimed restoration, critics have challenged the efficiency of the refineries in ensuring that petroleum products are produced.

The MAN DG lamented that the continued government ownership of the facilities has not only proven ineffective but also unfair to the Nigerian people, especially in a country brimming with capable entrepreneurs.

“Those four refineries are a pure drain on the Nigerian economy, and it is not fair to the Nigerian people. We should have a situation where we are able to speak truth to ourselves and encourage private sector investment,” he stated.

Mr Ajayi-Kadiri insisted that a fully privatised model would reduce corruption and promote accountability in the energy sector.

“It’s our natural endowment. We are the sixth-largest producer of crude oil in the world, yet we suffer. I can tell you that if you completely go private, it will be difficult for anyone to steal.

“It will be difficult for anybody to be unaccountable. It will be difficult to keep having insinuations of massive fraud,” he said.

Recall that recently, it was widely reported that the Economic and Financial Crimes Commission (EFCC) had arrested some former executives of the national oil company on fraud related to the refineries. This has since been denied.

Last week, the NNPC alleged that some shadowy figures are trying to undo its handwork, in light of the allegations.