By Oke PeterProfessor Emeritus of Petroleum Economics,
Wumi Iledare, has urged caution over the proposed sale of Nigeria’s state-owned refineries in
Port Harcourt, Warri, and Kaduna. He advised President Bola Tinubu and the
Nigerian National Petroleum Company Limited (NNPCL) to adopt a more strategic and transparent approach that prioritizes national interest.In a weekend statement,
Iledare reacted to comments made by
NNPCL’s Group Chief Executive Officer,
Bayo Ojulari, who recently suggested in an interview with Bloomberg that the refineries may be sold after an ongoing review is completed.
Port Harcourt Refinery
Iledare argued that the primary challenge facing the refineries is not government ownership but operational inefficiency.
“Ownership is not the problem — inefficiency is,” he said, stressing that selling the assets without addressing systemic governance issues could lead to repeating past mistakes and jeopardize Nigeria’s energy security.
Instead of outright sale,
Iledare recommended exploring hybrid solutions like public-private partnerships and performance-based concessions, aligning with the commercial intent of the
Petroleum Industry Act (PIA) 2021.
“Privatisation should not lead to monopolies or be captured by elites,” he warned. “The real objective is to unlock value and reposition the downstream sector for long-term growth.”
This warning comes after
NNPCL announced in May 2025 that the
Port Harcourt Refinery had been shut down for maintenance and assessment. Despite significant investments in their rehabilitation, the Warri and Kaduna refineries remain inactive.Meanwhile, Dangote Group President
Aliko Dangote recently expressed doubts about the future viability of NNPCL’s refineries.
