Marketers Predict Cheaper Petrol in Nigeria, Back NNPC Refinery Sale
Nigerian oil marketers and industry experts have voiced their support for the proposed sale or privatization of the country’s non-functional refineries managed by the Nigerian National Petroleum Company Limited (NNPCL). They see this move as crucial to eliminating years of inefficiency and waste.
The transition to private sector ownership is anticipated to open up the downstream sector to competition, ultimately resulting in more affordable fuel for Nigerians. Among the refineries considered for this action are the Port Harcourt, Warri, and Kaduna facilities, which have collectively consumed trillions of naira in federal rehabilitation funds with minimal output.
Although these facilities have a combined capacity of 445,000 barrels per day, they have remained largely inactive despite immense government investment. Bayo Ojulari, NNPC’s Group CEO, revealed during an interview at the OPEC International Seminar in Vienna that the company is re-evaluating its refinery strategy. Ojulari noted that the facilities had become obsolete and hinted at a potential sale, although no final decision has been made yet. “Sale is not off the table,” he confirmed.
The conversation gained further momentum when Aliko Dangote, President of the Dangote Group, remarked that due to longstanding mismanagement, the refineries might never become viable again. This has sparked discussions about the prudent next steps for Nigeria’s refinery infrastructure.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), spoke with cautious optimism regarding the sale. He emphasized the importance of involving all critical stakeholders in any future sale process, while also cautioning against potential political influences. According to Gillis-Harry, “The privatization process, if initiated, must be transparent and inclusive. All stakeholders, including MEMAN, DAPPMAN, PETROAN, IPMAN, and NUPENG, should have a seat at the table.”
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), shared similar concerns, describing the refineries as a financial burden. He pointed out that the billions spent on turnaround maintenance have produced no tangible results. “Repairs are long overdue. But if that’s no longer feasible, then selling them to capable investors is the next best option,” he added, stressing the goal of creating a competitive refining market.
Energy economist Kelvin Emmanuel also weighed in, warning that any sale should be preceded by investigations into prior mismanagements, particularly under Mele Kyari’s leadership. “It would be a travesty if this clear case of economic sabotage is ignored,” he said.
Reports indicate that $1.4 billion was allocated for refurbishing the Port Harcourt refinery in 2021, with additional allocations of $897 million and $586 million for Warri and Kaduna, respectively. Despite these massive investments, the refineries remain unproductive.
Stakeholders agree that only a transparent and inclusive privatization process can restore efficiency to Nigeria’s refining sector—and potentially lead to reduced petrol prices for everyday Nigerians.
In related developments, the Dangote Refinery has announced ambitious plans to expand operations across Africa, starting with Namibia. This is part of a broader vision to industrialize the continent and reduce its reliance on Western energy supplies. According to Anthony Chiejine, the spokesperson for the Dangote Group, the refinery’s recent success proves it can replicate its model anywhere in Africa.
