Expert Blasts FG for Cancelling Sale of Refineries to Dangote, Otedola

The federal government’s decision to shut down the Port Harcourt Refinery for maintenance has drawn renewed criticism from energy experts, who argue that years of failed investments into state-run refineries have proven the need for full privatisation.

The Nigerian National Petroleum Company Limited (NNPCL) recently announced a temporary halt in operations at the Port Harcourt Refining Company (PHRC) for routine inspection and servicing—just six months after it resumed fuel distribution following a $1.5 billion rehabilitation effort.

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Femi Soneye, NNPCL’s Chief Corporate Communications Officer, explained that the closure was part of scheduled checks aimed at ensuring long-term performance. However, industry analysts remain unconvinced.

Investment analyst Nnaemeka Obiaraeri strongly criticised the government’s longstanding approach, claiming massive funds had been squandered on refineries that continue to underperform. In an interview, he praised former President Olusegun Obasanjo’s 2007 decision to sell the refineries to a consortium led by Aliko Dangote and Femi Otedola—an initiative later reversed.

“We’ve wasted trillions of naira since 1999 trying to revive these refineries with no lasting outcome,” Obiaraeri said. “Obasanjo’s move to privatise was the right call. Unfortunately, it was overturned in the name of nationalism, and now we’re paying the price.”

He alleged that the NNPC under previous leadership spent over N4 trillion on refineries without making them fully functional. According to him, the Port Harcourt plant never returned to full refining capacity and now functions more as a blending centre than a proper refinery.

Calling for urgent reforms, Obiaraeri proposed selling 80% of the NNPC’s refinery shares—allocating 30% to high-capacity private investors and 50% to Nigerian citizens through public listings.

“If you offer shares to Nigerians and list the refineries on the stock exchange, I assure you that within 12 months, they’ll be running at full strength,” he stated. “Just look at what Dangote has done—since 2015, he built the world’s largest single-train refinery with no excuses, just results.”

He also recommended converting the Kaduna Refinery into a fuel storage facility, citing obsolete infrastructure and unreliable gas supply systems. Meanwhile, he described the Warri and Port Harcourt refineries as lucrative opportunities for serious investors if privatised.

In a related development, the NNPCL has appointed Maryam Idrisu as the new Managing Director of NNPC Trading and named Obioma Abangwu as Chief Liaison Officer for Board Matters. These changes follow a sweeping restructuring in which over 200 staff—many reportedly aligned with former Group CEO Mele Kyari—were laid off. Reports suggest the disengaged employees were those nearing retirement, with 17 months or less of service remaining.