The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadiri, has called on the Federal Government to fully privatise Nigeria’s four state-owned refineries, describing them as “a pure drain on the Nigerian economy.”
Speaking during a televised interview, Ajayi-Kadiri argued that handing over the Port Harcourt, Warri, and Kaduna refineries to private sector operators would improve efficiency, eliminate waste, and strengthen public accountability.
“If you ask me, the government should just sell these refineries. Give them to private sector people who will run them efficiently and be able to deliver,” he said on Tuesday.
“When something belongs to everybody, it belongs to nobody.”
While the government has made strides since 2024 to restore operations at the Port Harcourt and Warri refineries, full rehabilitation is still ongoing at the second Port Harcourt unit and the Kaduna facility. But the MAN DG insists that continued state ownership is no longer justifiable, especially in a country brimming with capable entrepreneurs.
“Those four refineries are a pure drain on the Nigerian economy, and it is not fair to the Nigerian people,” he said. “We should speak truth to ourselves and encourage private sector investment.”
Privatisation Will Curb Corruption, Improve Transparency
Ajayi-Kadiri emphasized that full privatisation would significantly curb corruption and promote transparency in Nigeria’s energy sector.
“It’s our natural endowment. We are the sixth-largest producer of crude oil in the world, yet we suffer.
If you completely go private, it will be difficult for anyone to steal. It will be difficult for anybody to be unaccountable.”
Nigeria’s four state-owned refineries have a long history of inefficiency and underperformance. In contrast, the Dangote Refinery, commissioned in May 2023, has sparked optimism over reducing fuel imports and expanding local refining capacity though also raising concerns over possible market monopoly.
Ajayi-Kadiri dismissed monopoly fears, stating that the public refineries can become viable competitors once privatised and properly run.
“I do not subscribe to the view that we are creating a monopoly. Those four other refineries are potential competitors. We’ve been told that one is working, then again told that it’s not. Give them to people who will ensure they actually work.”
Power Sector, Subsidy, and Security Concerns
Beyond refining, the MAN DG urged the government to double down on investment in electricity infrastructure, calling for a revamp of the failing distribution companies (DisCos) and full support for the ‘naira-for-crude’ policy.
He also weighed in on President Bola Tinubu’s economic reforms, particularly the fuel subsidy removal, which he described as painful but necessary to avoid fiscal collapse.
“If Nigeria didn’t stop the subsidy, the subsidy would have stopped or killed us,” he said.
Though the subsidy removal initially triggered a cost-of-living crisis, with petrol prices and transport costs soaring, Ajayi-Kadiri expressed optimism about price stabilisation in the near future.
“It is going to be better. I see the price coming down to ₦800, and that is what manufacturers want.”
Manufacturers Spent ₦2 Trillion on Alternative Power in 2023
Ajayi-Kadiri also revealed that manufacturers spent over ₦2 trillion on alternative energy sources in 2023 due to Nigeria’s unreliable power supply. This cost, he said, is a major factor behind high production expenses and directly impacts consumer prices.
Finally, he highlighted insecurity as a growing disincentive to investment and urged the government to treat it as an economic emergency.
“No investor wants to operate in a country where safety is uncertain. We must address insecurity if we are serious about reviving industrial productivity.”
