The Speaker of the House of Representatives, Tajudeen Abbas, has advocated for the privatization of oil refineries in Nigeria as a solution to the persistent crises plaguing the oil sector. Abbas made this recommendation during a meeting with the top management of the Nigerian National Petroleum Company Limited (NNPCL), led by the Group Managing Director, Mr. Mele Kyari, in Abuja.
Expressing dissatisfaction with the current state of the refineries, Abbas emphasized the need for multi-dimensional uses of these facilities, even in the absence of crude oil. He urged the NNPCL management to explore ways to privatize the refineries, highlighting the inefficiencies that would become more apparent when faced with competition from new refineries like Dangote’s.
Abbas stated, “We have spent so much money and time deceiving ourselves that some businesses can be run by the government. In the case of the refineries, we have now realized that some sectors of NNPCL business can only be handled by the private sector.”
He urged the NNPCL to make privatization a cardinal objective, anticipating that it would enhance the competitiveness of the refineries in the future. Abbas committed the support of the House to the economic development of Nigeria through the success of the NNPCL.
Kyari, the Group Managing Director, assured that all refineries would become fully operational, making Nigeria a net exporter of petroleum products by the end of 2024. He attributed the historical inactivity of refineries to the petroleum subsidy and emphasized that private sector investments were now attracted due to the subsidy’s removal.
Kyari pledged the operationalization of the Port Harcourt refinery by the end of December 2023, followed by the Warri refinery in the first quarter of 2024, and the Kaduna refinery by the end of 2024. He expressed optimism that Nigeria would cease fuel importation by the same year, aligning with the ongoing initiatives, rehabilitation efforts, and the upcoming Dangote refinery.
Additionally, Kyari affirmed that the expected government revenue from the oil sector would reach N4.5 trillion by the end of 2023, emphasizing the NNPCL’s commitment to returning value to shareholders in compliance with the Petroleum Industry Act.
