ABUJA: The Nigerian presidency has revealed plans for the full privatization of the country’s state owned refineries, including the Port Harcourt, Warri, and Kaduna facilities. This move is part of ongoing efforts to restructure and revitalize the nation’s oil sector.
Sunday Dare, the President’s special adviser on media and public communications, confirmed the development in a statement posted on Sunday via his official X (formerly Twitter) account, though no specific timeline was provided for the privatization process.
The Nigerian government has faced decades of challenges in maintaining its four national refineries, which have been largely non-operational despite trillions of naira invested in repairs and upgrades. This persistent failure has led to Nigeria’s dependence on imported petroleum products, putting considerable strain on the nation’s foreign exchange reserves.
In a statement, Dare confirmed that the full privatization of the Port Harcourt, Warri, and Kaduna refineries is currently in progress. This initiative is part of the government’s larger strategy to overhaul the oil and gas sector, improve refinery output, and reduce the country’s reliance on imported fuel.
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Meanwhile, President Bola Tinubu has congratulated the Nigeria National Petroleum Company Limited (NNPCL) for successfully revitalizing the Port Harcourt Refinery. The Port Harcourt facility, one of the largest refineries in sub-Saharan Africa, had suffered years of underperformance due to poor maintenance, corruption, and a lack of investment. With a combined capacity of 210,000 barrels per day from two complexes the Old Refinery (built in 1965) and the New Refinery (constructed in 1989) the plant has the potential to significantly boost Nigeria’s domestic refining capacity.
Tinubu commended the leadership of NNPCL, particularly Group Chief Executive Officer Mele Kyari, for their perseverance in overcoming numerous challenges to achieve this milestone. The President also acknowledged the critical role played by the African Export-Import Bank, which financed the rehabilitation with $1.5 billion.
Despite delays and setbacks in the rehabilitation process, NNPCL has announced that the Port Harcourt refinery is now set to begin trucking out 60,000 barrels per day of refined petroleum products, including Premium Motor Spirit (PMS) and diesel, starting from November 26, 2024.
While progress has been made in revitalizing the Port Harcourt refinery, President Tinubu has urged NNPCL to expedite the reactivation of the second Port Harcourt refinery, as well as the Warri and Kaduna refineries. These refineries are seen as crucial to Nigeria’s long-term energy security and economic growth.
The revitalization of these key refineries is in line with Tinubu’s broader vision of achieving energy sufficiency and boosting Nigeria’s export capacity. He emphasized that with the gas sector also receiving unprecedented attention under his administration, the country aims to become a major energy hub in Africa.
The government’s commitment to the privatization of state-owned refineries comes alongside broader efforts to overhaul Nigeria’s energy sector, which has long struggled with infrastructure challenges and inefficiencies. With the reactivation of key refineries and an emphasis on domestic production, Nigeria hopes to reduce its dependence on fuel imports, improve energy security, and ensure economic prosperity for its citizens.
In his remarks, President Tinubu reaffirmed his administration’s dedication to enhancing Nigeria’s energy infrastructure, improving refining capacity, and promoting accountability and integrity in the management of national resources. These efforts are a cornerstone of his Renewed Hope Agenda, which seeks to achieve shared economic growth and elevate Nigeria’s position as a global player in energy production and export.
