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, describing them as a “pure drain on the Nigerian economy.”
Ajayi-Kadiri, who was a guest on Channels Television’s Politics Today monitored by News Point Nigeria, argued that the government should hand over the Port Harcourt, Warri, and Kaduna refineries to the private sector for efficient management and productivity.
“If you ask me, the government should just sell these refineries. Give them to private sector people who will run them efficiently and be able to deliver. When something belongs to everybody, it belongs to nobody,” Ajayi-Kadiri said on Tuesday.
The federal government began efforts in 2024 to revive its four state-owned refineries, with the old Port Harcourt and Warri refineries partially restored, while rehabilitation continues on the second Port Harcourt unit and the Kaduna refinery.
However, the MAN DG lamented that the continued government ownership of the facilities has not only proven ineffective but also unfair to the Nigerian people, especially in a country brimming with capable entrepreneurs.
“Those four refineries are a pure drain on the Nigerian economy, and it is not fair to the Nigerian people. We should have a situation where we are able to speak truth to ourselves and encourage private sector investment,” he stated.
Ajayi-Kadiri insisted that a fully privatised model would reduce corruption and promote accountability in the energy sector.
“It’s our natural endowment. We are the sixth-largest producer of crude oil in the world, yet we suffer. I can tell you that if you completely go private, it will be difficult for anyone to steal.
“It will be difficult for anybody to be unaccountable. It will be difficult to keep having insinuations of massive fraud.”
Nigeria currently has four major state-owned refineries — two in Port Harcourt, one in Warri, and one in Kaduna — all of which have faced long-standing issues of inefficiency and underperformance.
In contrast, the Dangote Refinery in Lagos has raised hopes of reducing fuel imports and boosting local refining, though it has also sparked concerns about potential monopoly in Nigeria’s energy sector.
Responding to a question on what single reform could best support manufacturers, Ajayi-Kadiri called for total privatisation of all public refineries and greater investment in power infrastructure.
“The government should completely privatise all the other refineries. They should ensure that the ‘naira for crude’ policy is sustainable, adequately funded, and supported. Also, we need to address the incompetent distribution companies (DisCos) and drive investment into the power sector to guarantee supply,” the MAN DG stated.
On concerns about market monopoly with the emergence of the Dangote Refinery, Ajayi-Kadiri dismissed such fears, saying competition remains viable.
“I do not subscribe to the view that we are creating a monopoly. Those four other refineries are potential competitors. We’ve been told that one is working, then again told that it’s not. Give them to people who will ensure they actually work,” he said.