Petrol Marketers Renew Call for Privatisation of NNPC Refineries, say it Should be Done Soon
- PETROAN has called for the privatisation of Nigeria’s four state-owned refineries by early 2026
- The association said privatisation would reduce government spending and improve efficiency
- NNPC Limited said it is reviewing the refineries’ viability rather than selling them outright
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has renewed its call on the federal government to privatise Nigeria’s four state-owned refineries, urging that the sales be concluded by the first quarter of 2026.
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In a statement, PETROAN said privatising the refineries operated by the Nigerian National Petroleum Company Limited (NNPC Limited) would end the recurring financial burden on the government, improve efficiency and attract private capital and technical expertise into the sector.
The association’s National President, Mr Billy Gillis-Harry, said years of sustained public funding have failed to make the refineries productive, arguing that private sector-led management is now inevitable if Nigeria is to achieve energy security and stability in the downstream petroleum sector.
Privatisation will allow competition – PETROAN President
As reported by PUNCH, PETROAN argued that a properly executed privatisation would promote competition, reduce dependence on imported petroleum products, conserve foreign exchange and support job creation across the oil and gas value chain.
The association also linked refinery reform to broader sector growth, noting that increased domestic refining capacity would complement investments in upstream production and strengthen Nigeria’s overall energy outlook.
“PETROAN renewed its call for the privatisation of Nigeria’s four state-owned refineries, advocating that the process be transparently concluded by the first quarter of 2026,” the statement stated.
PETROAN expresses confidence in 2026 budget
PETROAN expressed confidence that the 2026 Budget, based on a crude oil production target of 1.84 million barrels per day and an oil price benchmark of between $64 and $65 per barrel, provides a strong framework for implementing refinery privatisation and other key reforms.
The association maintained that decisive action on the refineries, improved security for oil and gas infrastructure, effective host community engagement under the Petroleum Industry Act, and well-funded regulators would boost investor confidence and sector performance.
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It further argued that privatisation would free government resources for critical areas such as security and infrastructure, while allowing the private sector to drive efficiency and innovation in refining and petrochemical development.
Calls for the sale of the refineries have intensified following the shutdown of the Port Harcourt refinery in May, barely six months after it was declared operational, and the Warri refinery, which reportedly stopped operations one month after it was inaugurated in December 2024.
Source: Getty Images
MAN, OPS advise sale of refineries
Industry groups, including the Manufacturers Association of Nigeria and the Organised Private Sector, have described the refineries as a drain on the economy, urging the federal government to sell them off.
Records show that billions of dollars have been approved for the rehabilitation of the Port Harcourt, Warri and Kaduna refineries over the years, with little to show in terms of output.
However, the new Group Chief Executive Officer of NNPC Limited, Mr Bayo Ojulari, has opposed calls for outright sale, saying the company is assessing the operational and commercial viability of the refineries.
He said the review would determine whether the plants should be overhauled or repurposed to improve efficiency and profitability.
Ojulari added that the ongoing technical and commercial review is aimed at repositioning the refineries as sustainable, revenue-generating assets capable of meeting Nigeria’s fuel demand and aligning with international standards.
FG considers sale of refineries
Legit.ng earlier reported that the federal government is also considering the sale of the four refineries, with the hope of attracting private and foreign investors to the downstream sector.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, revealed the plan in an interview with Bloomberg on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference.
She said the government was considering several options for the refineries, including full or partial sale to qualified private investors with the financial and technical capacity to revive the moribund assets.
Source: Legit.ng
