Nigeria’s Refineries Need Private Capital, Not Another Costly Revival

President Bola Tinubu is right that Nigeria’s state-owned refineries must be commercially viable, not merely restarted. But another government-funded rehabilitation could repeat the familiar cycle of technical failures, political interference and mounting losses. Port Harcourt, Warri and Kaduna refineries have absorbed enormous public funds while producing little fuel. NNPC’s 2024 accounts showed investment in the three facilities rising to ₦2.92 trillion, while the refineries reportedly owed the company ₦8.67 trillion. Port Harcourt briefly resumed limited operations in late 2024 before shutting down again in May 2025. Nigeria’s challenge is not only ageing equipment. It is the ownership and management model. Political appointments, inflated payrolls, weak oversight and procurement abuses have repeatedly turned public refineries into liabilities. The fraud cases involving former refinery executives further underline the need for accountability. The government should pursue transparent divestment, concessions or public-private partnerships, with competent investors risking their own capital. Nigeria can retain regulation and energy-security oversight without running loss-making plants. The country does not need another refinery inauguration; it needs sustainable refinery businesses that work for Nigerians.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.