The Manufacturers Association of Nigeria (MAN) has intensified calls for the full privatization of the country’s four state-owned refineries, citing chronic inefficiency and mounting maintenance costs.
MAN Director-General Segun Ajayi-Kadir made the demand during a televised interview, pointing to the Dangote Refinery’s operational success as proof of private sector capability.
Ajayi-Kadir revealed that energy expenses consume over 40% of manufacturers’ operational costs, stressing that functional private refineries would slash production expenses and revive struggling SMEs.
“The government has no business in refinery operations when private players have demonstrated superior competence,” he stated, referencing how Dangote’s $19 billion facility has already reduced diesel prices and stabilized supply chains since commencing operations.
The MAN chief dismissed monopoly concerns, arguing that market performance should outweigh ownership structures. “Our focus should be on value delivery, not the number of players.
The real tragedy was Nigeria exporting crude while importing refined fuel despite its oil wealth,” he noted, applauding subsidy removal for creating space for private investment in energy infrastructure.
Industry analysts estimate Nigeria spends ₦4 trillion annually maintaining non-functional refineries in Port Harcourt, Warri, and Kaduna. The government recently announced plans to rehabilitate the Port Harcourt facility with $1.5 billion, but MAN insists privatization would eliminate such recurrent expenditures.
Petroleum Minister Heineken Lokpobiri acknowledged receiving multiple privatization proposals but cited legal hurdles requiring National Assembly approval for asset sales.
As fuel imports drop 60% since Dangote’s launch, pressure mounts on President Tinubu’s administration to accelerate energy sector reforms promised under his Renewed Hope Agenda.
