Experts Call for Private Ownership to Revive Nigeria’s Refineries

The Federal Government of Nigeria is being urged to privatize its refineries to improve their operations. Bayo Olarewaju-Alo, the National President of the Nigerian Society of Chemical Engineers, made this call at a press conference in Ikeja, Lagos.

For over 20 years, the government has invested heavily in the three main refineries located in Warri, Port Harcourt, and Kaduna, but these efforts have not led to successful operations. Olarewaju-Alo noted that despite attempts to rehabilitate the refineries, they have failed to produce oil consistently and competitively.

He emphasized that the issues facing the refineries are not just technical but also involve problems with ownership, governance, and accountability. The aging facilities, outdated technology, and security issues need to be addressed before any investment can be made.

Olaweju-Alo suggested that a new ownership structure should include majority private ownership while allowing the government to retain a minority interest. He pointed to the Nigeria LNG model as a successful example where public equity works alongside professional management.

The Society also welcomed a recent agreement between the Nigerian National Petroleum Corporation Limited and a foreign company, viewing it as a positive step. However, they stressed the need for a fair and competitive process to select partners for the refineries.

Olarewaju-Alo expressed the Society’s commitment to assist in the revitalization of the refineries, including support in technical assessments and monitoring after any changes are made. He called on the government to involve professional organizations and create a clear plan for the future of the refineries.