Speaker calls for Privatization of Nigeria’s Refineries for Optimal Performance

By Iyojo Ameh

Tajudeen Abbas, the House of Representatives Speaker, has strongly recommended the privatization of Nigeria’s oil refineries to bolster their operational efficiency. His call came during a meeting with NNPCL’s management, led by Group Managing Director Mele Kyari, in Abuja on Thursday.

Abbas criticized the prolonged subpar condition of the refineries, highlighting substantial expenditures on workers’ salaries and allowances despite minimal output.

He stressed the urgency of diversifying the refineries’ operations to maintain workforce activity even during periods lacking crude oil availability.

“It’s essential to privatize these refineries.

We’ve long harbored the illusion that certain businesses can be effectively managed by the government. However, it’s now evident that specific sectors within NNPC’s operations, including our refineries, necessitate private sector management,” stated Abbas.

With the impending competition from the Dangote refinery, Abbas emphasized the critical need to revamp the refineries to compete favorably in the market.

Assuring unwavering support from the House of Representatives, Abbas highlighted concerns about rampant oil theft, attributing it to revenue drain, decreased forex availability, and inflationary pressures. To address this, the House inaugurated a dedicated committee on oil theft.

Mele Kyari responded by outlining plans for all refineries to achieve full operational status by the end of 2024, positioning Nigeria as a net exporter of petroleum products. He attributed past inefficiencies in government-owned refineries to subsidies and affirmed that their removal had sparked significant private sector investments.

Kyari assured the commencement of operations at the Port Harcourt Refinery by December, followed by the Warri Refinery in early 2024, and the Kaduna Refinery by year-end. These initiatives, coupled with rehabilitation efforts and the emergence of the Dangote Refinery, aimed to make Nigeria self-sufficient in petroleum products by 2024.

Kyari highlighted the company’s shift towards transparency, with financial statements from 2018 now accessible to the public. He projected government revenue from NNPCL to reach N4.5 trillion by the end of 2023, aligning with the Petroleum Industry Act’s objectives.

Assuring a steady fuel supply during the Christmas season and beyond, Kyari emphasized the nation’s immunity from fuel shortages due to any entity’s control.