“Sell Off all Public Refineries to Revive Oil Sector,” Dangote urges FG

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Nigeria’s public refineries have remained stagnant for three decades, prompting debate about their future. Aliko Dangote, President of the Dangote Group, has reignited the discussion, arguing that the state-owned refineries in Port Harcourt, Warri, and Kaduna might never operate effectively again.

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“They are still not working. And I don’t think, and I doubt very much if they will work,” Dangote said, likening the maintenance of the refineries to “trying to modernise a car that was built 40 years ago, when technology and everything had changed.” He added, “Even if you change the engine, the body will not be able to take the shock of that new technology engine.”

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, has signaled openness to privatization, stating, “Sale is not out of the question.” This development comes as the NNPC reviews its refinery strategies

Privatizing the refineries could bring in modern management practices and technical know-how, making them more profitable and efficient. Private ownership would stop financial hemorrhage and redirect funds to more productive sectors, curb political interference, nepotism, and corruption, and encourage a competitive environment.

Many countries have successfully privatized their refineries, allowing governments to focus on regulation rather than operations. The United States, United Kingdom, Canada, India, Germany, South Korea, Japan, Netherlands, and Singapore all have privately owned and functional refineries.

Nigeria should consider borrowing a leaf from these countries’ books. Privatizing the refineries could create stable employment opportunities, stimulate growth in downstream industries, strengthen the petroleum value chain, and boost the economy significantly. With the right approach, privatization could be the key to unlocking the potential of Nigeria’s refineries and driving economic growth.

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