Following the seemingly botched repairs of the Port Harcourt and Warri refineries, after both plants gulped about $2.4bn and returned to dormancy within six months of operation, the Organised Private Sector and oil marketers have called for the immediate privatisation of the facilities.

However, the regulatory agency of the midstream and downstream arms of the oil sector said the privatisation of these plants would only happen if approved by the Federal Executive Council, as officials of the Nigerian National Petroleum Company Limited and the Federal Ministry of Petroleum Resources stayed mute on the latest call by the OPS.

The PUNCH reports that calls for the privatisation of the government-owned refineries, under the management of NNPCL, intensified following the shutdown of the 60,000 barrels-per-day old Port Harcourt Refining Company, six months after it was declared operational.

The PUNCH recalls that the Warri Refining and Petrochemical Company was shut down in January, barely a month after it was declared operational. It was reported that the Federal Government had spent up to $2.4bn on the turnaround maintenance of the facilities.

In an interview with The PUNCH, the Executive Secretary and Chief Executive Officer of MEMAN, Clement Isong, said MEMAN had consistently requested that the facilities be handed over to professional refinery managers.

Isong said Nigeria needed the refinery to avoid a single source of fuel distribution or supply, saying there should be healthy competition with the Dangote Petroleum Refinery.

“I have been consistent. We need those refineries. We need them to work. And we have been consistent in proposing that the refineries be handed over to professional refinery managers, whether with or without a stake, in order to ensure that there is some competition with Dangote. We think that competition is always important in the sector,” Isong said.

Asked if he meant the NNPC cannot run the refineries effectively, Isong reacted that the refineries might be suffering from political interference and the perception of the NNPC’s social role. These, he said, had prevented the NNPC from taking hard decisions like reducing its staff strength, like a private business would do.

“History has shown that the challenge may be a result of the political interference in the past and the perception of its social role. Those are the two things that have prevented NNPC from taking hard decisions. For instance, a private enterprise will have optimal staff strength, whereas NNPC will struggle to reduce its staff strength because there could be a crisis as it struggles to manage its relationship with the union,” he maintained.

Speaking further, Isong explained that the refineries are also being affected by the government’s inability to manage its economic environment and costs. He emphasised that the private sector has consistently outperformed government-owned corporations.

Isong added that nobody could harass Aliko Dangote, knowing well that he is running a private business. “There is also the inability of the government to manage its economic environment and costs. The private sector, historically, in every geography, has done better. Government-owned corporations struggle because of their perceived social role. The private sector is much better at managing this decision-making simply because stakeholders understand that they are privately owned.

“Stakeholders behave differently when they know you’re government-owned; they challenge differently. But if you’re private, nobody can harass you. Nobody can harass Dangote, he’s running his business; it’s his pocket,” he stated.

OPS reacts

Speaking with one of our correspondents, the Chairman of the Organised Private Sector of Nigeria, Dele Oye, said privatisation of the refineries was long overdue. Oye said the government should not be involved in running a business, considering its performance in the past.

Rather, the OPS leader noted that the government should be making policies and laws based on the private sector’s advice.

“The privatisation of government refineries is long overdue. The government has no business in business, judging by their performance in business. They should be making policies and laws based on the private sector’s advice and input,” he stressed.

According to him, the involvement of the government in running the refineries was not helpful to either the government or the general public, as he noted that the government should retain the role of a regulator and facilitator.

“Their involvement in running the refineries has not been helpful to both the government and the general public. They should stay as regulators and facilitators,” stressed.

Similarly, the President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, said the call for the privatisation of Nigeria’s refineries was not only tenable but necessary. He regretted the shutdown of the refineries after spending over $2bn for maintenance, stressing that this showed a systemic failure in the public sector.

Egbesola argued that injecting funds into a project without addressing the real challenge would be an effort in futility.

“The fact that about $2.5bn was spent on turnaround maintenance, only for the refineries to shut down again within six months, highlights a systemic failure in public sector management. It’s a painful reminder that throwing money at a problem without reforming the underlying structure is a futile exercise,” he said.

He stressed that if privatisation was done transparently, it would offer a pathway to efficiency and higher productivity, referencing Dangote as an example.

“Privatisation, if done transparently and with the right regulatory framework, offers a pathway to efficiency, sustainability, and improved productivity. We have seen how private-led initiatives like the Dangote refinery are making significant strides where public ventures have failed.

“However, the process must be open, competitive, and designed to attract genuine investors, not political proxies. The goal should be to ensure that these national assets finally deliver value to Nigerians, not drain our resources any further,” Egbesola stated.

The Centre for Promotion of Private Enterprise endorsed the position of major oil marketers who called for the privatisation of the national refineries, stating that the country has not seen value for money despite government investments to activate the refineries.

In an interview with The PUNCH, CPPE Director Dr Muda Yusuf noted that Nigeria’s refineries, which are largely non-functional despite the Federal Government injecting $2.4bn, would be better operated by private operators. He recommended either a total or partial equity sale.

He explained, “The best option we have as far as the current government refineries are concerned is privatisation. We could sell it off completely so that the government can exit from the operations of the refineries, or we could sell about maybe 51 per cent of it and give controlling shares to the private sector, adopting the Nigeria Liquefied Natural Gas model.”

When contacted, the spokesperson for the Nigerian Midstream and Downstream Petroleum Regulatory Authority, George Ene-Ita, said the decision to privatise the refineries is solely a decision to be taken by the executive arm of the government.


Ene-Ita, in an interview, said, “That question has nothing to do with the authority. That is an executive decision. It has nothing to do with the NMDPRA. Our job is to go out, verify, and regulate facilities. But whether they are privatised or commercialised or housed wherever they are is not our call.”

The NNPC spokesperson, Olufemi Soneye, did not reply to messages sent to him as of press time. However, on May 24, Soneye confirmed to one of our correspondents that the Port Harcourt refinery would be shut for one month for maintenance.

“NNPC Ltd wishes to inform the general public that the Port Harcourt Refining Company will undergo a planned maintenance shutdown. This scheduled maintenance and sustainability assessment will commence on May 24, 2025,” he said.

Soneye added that the company is working with relevant stakeholders to ensure efficiency and transparency during the exercise. “We are working closely with all relevant stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, to ensure the maintenance and assessment activities are carried out efficiently and transparently.

“NNPC Ltd remains steadfast in its commitment to delivering sustainable energy security for Nigeria. Further updates will be provided regularly through our official channels, including our website, media platforms, and public statements,” he stated.

But marketers in Eleme, the community hosting the refinery, told The PUNCH that they have not seen any sign of maintenance activity within the facility.

Recall that a former Vice President and Presidential Candidate of the People’s Democratic Party in 2023, Atiku Abubakar, had once proposed the privatisation of the refineries, but the suggestion was rejected by the Muhammadu Buhari administration.

In 2024, the NNPC announced that it was looking for private operators to run the Port Harcourt and Warri refineries following their rehabilitation. NNPC said it was seeking to engage reputable and credible operations and maintenance companies to operate and maintain the refineries “to ensure reliability and sustainability towards meeting the nation’s fuel supply and energy security obligations.”

Reacting to this, Atiku tackled former President Muhammadu Buhari and the incumbent President Bola Tinubu for failing to heed his advice that the refineries should be sold to private individuals.

The ex-VP said he had always advocated for what he called far-reaching reforms in the nation’s oil sector and other sectors. He said he consistently called on the Buhari administration to break its monopoly in all infrastructure sectors, including the refineries, and give investors a larger role in funding and management.

He regretted, however, that the Buhari government refused to privatise the refineries but contracted a loan of $1.5bn for the rehabilitation of the Port Harcourt refinery. The former Vice President had said the oil refineries were left idle for years while paying huge staff salaries.

Recently, the Depot and Petroleum Products Marketers Association of Nigeria stated that the refineries owned by NNPCL cannot optimally produce petrol but naphtha.

DAPPMAN’s Executive Secretary, Olufemi Adewole, said his members would not go to the Port Harcourt or Warri refineries for petrol because the facilities were producing naphtha, not optimally producing the much-needed petrol.

“The NNPC refineries, both the revamped Port Harcourt and Warri, are not yet optimally producing PMS; they are producing naphtha. Our members will not go to them for now,” Adewole said.


In November 2024, the NNPC said the Port Harcourt refinery had resumed operations after years of inactivity. It said the rehabilitated complex of the old Port Harcourt refinery, which had been “revamped and upgraded with modern equipment,” was operating at a refining capacity of 70 per cent of its installed capacity.

The company added that diesel and Pour Fuel Oil would be the highest output from the refinery, with daily capacities of 1.5 million litres and 2.1 million litres, respectively. This would be followed by a daily output of Straight-Run Gasoline (Naphtha) blended into 1.4 million litres of Premium Motor Spirit, 900,000 litres of kerosene, and low-pour fuel oil of 2.1 million litres.

It was stated then that about 200 trucks of petrol would be released into the Nigerian market daily. NNPC spokesperson, Soneye, had stated this while replying to claims from some quarters that the Port Harcourt refinery was not producing fuel, but blending through Indorama Petrochemicals.

“We are, however, aware of unfounded claims by certain individuals suggesting that the refinery is not producing products. For clarity, the Old Port Harcourt Refinery is currently operating at 70 per cent of its installed capacity, with plans to ramp up to 90 per cent.

“The refinery is producing the following daily outputs: Straight-Run Gasoline (Naphtha): Blended into 1.4 million litres of Premium Motor Spirit (PMS or petrol); Kerosene: 900,000 litres; Automotive Gas Oil (AGO or Diesel): 1.5 million litres; Low Pour Fuel Oil (LPFO): 2.1 million litres; Liquefied Petroleum Gas (LPG).

“It is worth noting that the refinery incorporates crack C5, a blending component from our sister company, Indorama Petrochemicals (formerly Eleme Petrochemicals), to produce gasoline that meets required specifications. Blending is a standard practice in refineries globally, as no single unit can produce gasoline that fully complies with any country’s standards without such processes,” Soneye disclosed in November.

He added that the NNPC had made substantial progress on the new Port Harcourt Refinery, which he said would begin operations “soon” without prior announcements.

However, an April report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that the Port Harcourt refinery had been operating below 40 per cent capacity.

The President of the Dangote Group, Aliko Dangote, once said $4bn had been spent by the Federal Government in an attempt to revive the nation’s refineries.

The Port Harcourt refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years. The NNPC failed to commence operations at the refinery after seven postponements between December 2023 and September 2024.

The former Group Chief Executive Officer of the NNPC, Mele Kyari, later unveiled the refurbished facility in November without prior notice.

In separate remarks last year, former President Olusegun Obasanjo said the NNPC was aware that it could not operate the refineries, saying international oil companies like Shell once refused to operate the refineries when he requested them to do so.

According to Obasanjo, some Nigerians, including Aliko Dangote, once paid $750m to take over the refineries; however, his successor, Late Umar Yar’adua, turned it back.

Again, in January, Obasanjo said, “I was told not too long ago that since that time, more than $2bn have been squandered on the refineries and they still will not work.


“If a company like Shell tells me what they told me, I will believe them. If anybody tells you now that it (the refinery) is working, why are they now with Aliko (Dangote)? And Aliko will make his refinery work; not only make it work, he will make it deliver.”

Obasanjo concluded with a Yoruba proverb, comparing inflated claims about the refineries’ performance to a farmer who planted 100 heaps of yam but falsely claimed to have planted 200. “They say that after he has harvested 100 heaps of yams, he will also have 100 heaps of lies. You know what that means,” he said.

In a swift reaction at the time, Soneye invited Obasanjo for a tour of the Port Harcourt refinery to verify its operational status. “We extend an open invitation to President Obasanjo for a tour of the rehabilitated refineries to witness firsthand the progress made under the new NNPC Limited,” the oil firm’s spokesperson had stated.

But the national oil firm came under public scrutiny after an April 2025 document of the NMDPRA revealed that the refineries, which cost $2.4bn in maintenance, functioned below their widely publicised capacity.

The 125,000-capacity Warri refinery, which consumed $897.6m in maintenance costs, failed to produce petrol and was shut down barely a month after former NNPC Group Chief Executive Officer, Mele Kyari, declared it operational.

Similarly, Port Harcourt refinery, which resumed operations in November 2024 after gulping $1.5bn in refurbishment costs, was operating below 40 per cent capacity before the facility was shut down for a month for maintenance.

The Independent Petroleum Marketers Association of Nigeria said the NNPCL had to shut down the Port Harcourt Refining Company to save its face. IPMAN said the facility’s shutdown is insignificant to the Nigerian petrol market, stressing that the plant did not produce petrol for about three months before its eventual shutdown.

However, the Group’s Chief Executive Officer, Bayo Ojulari, has said no option is off the table regarding these refineries.

The GCEO, speaking recently after the inauguration of the board by President Bola Tinubu, said, “On the refineries, we have done the initial inspection of two refineries. We are hoping to do the third one in the coming weeks to begin to have this information. You know, it’s not about what you are told. You have to go there and see for yourself.

“Hopefully, by the time we finish this inspection, we will be going to the board to share what we have seen and get direction from the board on how we can move forward. We will come back with facts the way they are. And indeed, none of the options are off the table.”