Don’t rush to sell Nigeria’s refineries, Iledare cautions Tinubu, NNPCL – Proposes better path forward

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 RefineryIledare 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.