*Segun Ajayi-Kadiri, Director-General of the Manufacturers Association of Nigeria, highlights reasons why the Federal Government should fully privatise its Port-Harcourt, Warri and Kaduna oil refineries

Gbenga Kayode | 绿帽献妻

Describing the rehabilitated oil-refining plants a 鈥減ure drain on the Nigerian economy”, Mr. Segun Ajayi-Kadiri, Director-General of the Manufacturers Association of Nigeria (MAN), has urged the Federal Government to fully privatise the three state-owned refineries -Port-Harcourt, Warri, and Kaduna refineries.

绿帽献妻 reports Ajayi-Kadiri, who gave the advice Tuesday, July 1, 2025, while featuring on a on Channels TV programme monitored in Lagos, said the Nigerian Government rather should hand over the refineries to the private sector investors for efficient management, productivity, and optimal performance.

Mr. Segun Ajayi-Kadiri, Director-General of MAN

It is recalled the Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL) had performed series of Turnaround Maintenance on the state-owned oil refineries over the years with little or no results to advance the downstream petroleum sector of the economy.

Again, the Federal Government renewed the rehabilitation drive 2024, in a move to revive its four state-owned refineries, with the old Port Harcourt and Warri refineries partially restored later in the year, gulping billions of Naira.

Whereas rehabilitation yet continues on the second Port Harcourt unit and the Kaduna Refinery, according to NNPCL.

Ajayi-Kadiri: Private sector ‘will deliver on refineries’

Emphasising the imperative need for the government to allow the private sector to manage the three refineries, Ajayi-Kadiri asserted: 鈥淭he 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.”

The Director-General of MAN further lamented the continued government ownership of the premier facilities has not only proved ineffective but also unfair to the Nigerian people, considering the fact that the West African country brims with capable and proactive entrepreneurs.

State-owned oil refineries fast becoming a drainpipe

Stressing the importance of accountability in project management, Ajayi-Kadiri said: 鈥淭hose 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 contended that a fully privatised model with the oil refineries would reduce corruption and promote accountability in the energy sector.

The MAN Chief stared: 鈥淚t鈥檚 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.

鈥淚t will be difficult for anybody to be unaccountable. It will be difficult to keep having insinuations of massive fraud.鈥�

Comments on alleged market monopoly by Dangote Refinery

As the state-owned oil refineries have all faced long-standing issues of inefficiency and underperformance, the Dangote Petroleum Refinery, in Lagos, however, has raised hopes of reducing fuel imports and boosting local refining in the country.

Despite this, there are yet concerns about Dangote Refinery’s potential monopoly in energy sector of the Nigerian economy.

The 659,000 barrels per day (bpd) capacity Dangote Refinery was commissioned May 2023.

Responding to a question on what single reform could best support manufacturers, Ajayi-Kadiri rather advocated total privatisation of all state-owned refineries and greater investment in power infrastructure to turn around the country’s economy.

He restated “the government should completely privatise all the other refineries.

“They should ensure that the 鈥楴aira for crude鈥� policy is sustainable, adequately funded, and supported.”

The Director-General said: “Also, we need to address the incompetent (electricity) Distribution Companies (DisCos) and drive investment into the power sector to guarantee supply.”

Commenting on recent concerns about market monopoly with the emergence of the Dangote Petroleum Refinery, Ajayi-Kadiri expressly dismissed such fears, as ge maintained that competition remains viable in the downstream petroleum industry in Nigeria.

He averred: 鈥淚 do not subscribe to the view that we are creating a monopoly.

“Those four other refineries are potential competitors. We鈥檝e been told that one is working, then again told that it鈥檚 not.

“Give them to people who will ensure they actually work.”

If Nigeria had not stopped fuel subsidy….

Speaking on the outlook for fuel prices, following President Bola Ahmed Tinubu administration’s removal of the controversial petrol subsidy removal May 2023, he affirmed the policy was necessary to avoid an economic collapse at the time.

Ajayi-Kadiri declared: 鈥淚f Nigeria didn鈥檛 stop the subsidy, the subsidy would have stopped or killed us.”

According to the MAN Chief, manufacturers are optimistic about price stability in the oil and gas sector, hinting at a possible reduction in petrol prices.

He as well as stated: 鈥淚t is going to be better. I see the price coming down to N800, and that is what manufacturers want.”

For Nigeria to attain this, however, Ajayi-Kadiri stressed the need to tackle the menace of insecurity across the country, which he described as a growing disincentive to investments in the key sectors of the Nigerian economy.

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