A Professor emeritus of Petroleum Economics, Wumi Iledare, has issued a strong warning against the hasty sale of Nigeria's state-owned refineries in Port Harcourt, Warri, and Kaduna, urging for a more strategic approach aligned with national interests.
The warning comes in response to recent statements by NNPCL Group Chief Executive Officer, Bayo Ojulari, who hinted at plans to sell the nation's refineries after completing a review of the plants during a Bloomberg interview.
In his statement released over the weekend, Professor Iledare emphasized that inefficiency, rather than ownership, remains the fundamental issue plaguing the state-owned refineries.
"Ownership isn't the core issue —inefficiency is," he stated. "Selling the refineries without tackling systemic governance failures could repeat past mistakes and threaten energy security."
The petroleum expert recommended exploring hybrid models such as public-private partnerships and performance-based concessions, which he noted would align with the commercial spirit of the Petroleum Industry Act (PIA) 2021.
"Privatisation must not become monopoly or elite capture," Iledare warned. "The real goal is to unlock value and reposition the downstream sector for sustainable growth."
This development comes amid ongoing challenges in Nigeria's refining sector. In May 2025, NNPCL announced the shutdown of the Port Harcourt Refinery for maintenance and review. Meanwhile, the Warri and Kaduna refineries remain non-operational despite significant financial investments in their rehabilitation.
BenriNews reports that Aliko Dangote, President of Dangote Group, recently expressed doubts about the future operability of NNPCL refineries, suggesting they may not function again.
The debate over the fate of Nigeria's refineries continues as the country seeks sustainable solutions to its downstream petroleum sector challenges, balancing national interests with operational efficiency.
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