The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadiri, has urged the Federal Government to fully privatise the country’s state-owned refineries, calling them a “complete drain on the Nigerian economy.”
Speaking on Politics Today on Channels Television, Ajayi-Kadiri argued that the Port Harcourt, Warri, and Kaduna refineries would perform better under private sector control.
“If you ask me, the government should sell these refineries outright. Hand them to private operators who can run them efficiently and deliver results. When something belongs to everyone, it ends up belonging to no one,” he said on Tuesday.
In 2024, the Federal Government began reviving the four state-owned refineries. While partial repairs were completed on the old Port Harcourt and Warri refineries, rehabilitation is still ongoing at the second Port Harcourt unit and the Kaduna refinery.
However, Ajayi-Kadiri criticised the continued public ownership, stating it had failed and placed an unfair burden on Nigerians despite the country’s wealth of capable entrepreneurs.
“Those four refineries have become a pure economic liability. It’s unfair to the Nigerian people. We need to be honest with ourselves and allow private investment to thrive,” he added.
He maintained that full privatisation would reduce corruption and foster accountability in the oil and gas sector.
“This is our natural resource. We are the world’s sixth-largest crude oil producer, yet we suffer needlessly. A fully privatised system would make it difficult to steal or mismanage. It would ensure transparency and proper governance.”
Nigeria currently has four state-owned refineries—two in Port Harcourt, one in Warri, and one in Kaduna—long criticised for inefficiency and poor output.
In contrast, the privately-owned Dangote Refinery in Lagos, commissioned in May 2023, has raised hopes of improving local refining and reducing fuel imports, though it has also sparked fears of monopoly.
Ajayi-Kadiri dismissed monopoly concerns, stating: “I don’t believe this creates a monopoly. Those four state-owned refineries could be strong competitors. We’re often told one is working, then later that it isn’t. Let capable private operators take over and ensure they actually function.”
Asked what single reform would best support manufacturers, he pointed to privatisation and energy sector investment.
“The government should fully privatise the remaining refineries and ensure the ‘naira for crude’ policy remains stable and well-funded. Also, we must fix the dysfunctional distribution companies (DisCos) and attract investment into the power sector to guarantee electricity supply,” he said.
Ajayi-Kadiri also defended the removal of petrol subsidies, a policy introduced by President Bola Ahmed Tinubu in May 2023 to stabilise national finances.
“Had Nigeria not removed the subsidy, it would have crushed us,” he said, acknowledging the policy’s painful impact on living costs but stressing its long-term importance.
Since the subsidy’s removal, petrol prices have soared, pushing up transport fares, food costs, and other essentials—deepening hardship for nearly half the population living in poverty by 2024.
Nevertheless, Ajayi-Kadiri remains optimistic: “Prices will fall. I foresee petrol coming down to around ₦800, which is what manufacturers are hoping for.”
He also highlighted Nigeria’s insecurity as a major barrier to investment, noting that manufacturers spent over ₦2 trillion on alternative energy in 2023 due to poor electricity supply—an expense that increases production costs and weakens competitiveness.