MAN Urges Full Privatisation of Nigeria’s Refineries

The Manufacturers Association of Nigeria (MAN) has reiterated its call for the full privatisation of Nigeria’s four government-owned refineries, urging the Federal Government to hand over the facilities to private investors for efficient management.

MAN’s Director-General, Segun Ajayi-Kadir, while speaking on a television programme, asserted that the private sector has proven its ability to drive efficiency and energy security, pointing to the Dangote Refinery as an example of effective private-led investment.

He said the removal of fuel subsidies, though initially difficult, has catalyzed long-overdue reforms in the energy sector. According to him, the emergence of local refining, especially through private ventures like Dangote’s, has helped reduce logistics costs, eliminate middlemen, and improve the availability of petroleum products.

“Nigeria was once exporting crude while importing refined fuel — an unfortunate paradox for an oil-rich country. Today, local refining is taking root, and the benefits are beginning to show,” Ajayi-Kadir said.

He dismissed concerns over monopolistic tendencies, arguing that the focus should be on performance and value delivery, not just market share. He noted that high energy costs account for over 40% of manufacturing expenses and that reliable local production of diesel and compressed natural gas could significantly reduce production costs and revive small and medium-scale industries.

MAN urged the government to incentivize serious investors while stepping away from direct involvement in business operations. According to Ajayi-Kadir, continuing to subsidize inefficient state-owned refineries comes at an unsustainable cost to the Nigerian public.