OPS Pushes for Refinery Sell-off After $2.4bn “Wobbly” Repairs

Following troubled repairs at the Port Harcourt and Warri refineries—despite a combined investment of about $2.4 billion—the Organised Private Sector and oil marketers are urging the Federal Government to privatise the facilities.

Both refineries, declared operational after extensive rehabilitation work, reportedly ceased functioning within a few months. The Port Harcourt Refining Company, with a 60,000 barrels-per-day capacity, became idle just six months after its relaunch. Similarly, the Warri Refining and Petrochemical Company went offline in January, roughly one month after it was announced to be operational.

The turnaround maintenance of both plants cost the government an estimated $2.4 billion.

Clement Isong, Executive Secretary and CEO of the Manufacturers Association of Nigeria, emphasized the need for professional and commercial-minded management. He recommended that experienced refinery operators, preferably with equity participation, take over the assets to ensure competition within the domestic refining sector, particularly in relation to the Dangote Petroleum Refinery.

According to him, the country needs functioning refineries, and competition is crucial to the efficiency and sustainability of the industry. He also identified key systemic challenges within the current management framework, including political interference and social obligations that inhibit the adoption of necessary reforms, such as workforce restructuring.

Neither the Nigerian National Petroleum Company Limited nor the Ministry of Petroleum Resources has issued a response to the calls for privatisation. However, the regulatory authorities noted that any sale or concession of government-owned refineries would require the approval of the Federal Executive Council.