Experts Back Planned Sale of Refineries, Demand Transparency and Inclusion

Oil marketers and industry stakeholders have expressed strong support for the proposed sale of Nigeria’s state-owned refineries, urging the Nigerian National Petroleum Company Limited (NNPCL) to ensure the process is transparent, inclusive, and accountable. They believe the sale of the Port Harcourt, Warri, and Kaduna refineries—facilities that have consumed trillions of naira in failed maintenance—will usher in competition, improve pricing, and end years of fiscal mismanagement.

Their endorsements came after NNPCL’s Group CEO, Bayo Ojulari, revealed that ongoing rehabilitation efforts on the 445,000 barrels per day capacity refineries were proving futile due to the facilities’ outdated nature. Speaking during an interview at the 9th OPEC International Seminar in Vienna, Ojulari stated that all options, including a sale, remain on the table, although a final decision would follow the outcome of a comprehensive internal review expected by year-end.

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, described privatisation as the most sensible solution given the long-standing inefficiencies. However, he questioned the sudden timing of the proposal and warned against politicising the process. He called for inclusion of all key industry bodies—MEMAN, DAPPMAN, PETROAN, IPMAN, and NUPENG—stressing that stakeholder participation and clarity are essential to a successful transition.

Similarly, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted the massive financial drain the refineries have become. He said the sector urgently needs reform, adding that while scrapping the refineries isn’t ideal, selling them under the right framework would encourage competition and end decades of mismanagement.

Energy economist Kelvin Emmanuel criticized anti-graft agencies for their silence on alleged financial misconduct during previous rehabilitation projects, calling for investigations and accountability before any sale is concluded. Echoing this view, petroleum economist Professor Wumi Iledare warned against emotionally driven decisions, urging the government to adopt a long-term, strategic approach guided by the Petroleum Industry Act.

Despite over $2.8 billion already committed to reviving the refineries in recent years, their operations remain dormant, with mounting calls for transparency, justice, and a clean break from a wasteful past.