The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadiri, has called on the Federal Government to sell off the country’s state-owned refineries, warning that their continued ownership is draining the economy and stifling private sector efficiency.
Ajayi-Kadiri made the statement during an interview on a private TV, where he argued that the Port Harcourt, Warri, and Kaduna refineries should be fully privatised and handed over to capable private investors for proper management.
“If you ask me, the government should just sell these refineries. Give them to private sector people who will run them efficiently and deliver. When something belongs to everybody, it belongs to nobody,” he said.
The Federal Government began phased rehabilitation of the refineries in 2024, partially reviving the old Port Harcourt and Warri plants, with work ongoing at the Kaduna facility and the newer Port Harcourt unit. However, Ajayi-Kadiri believes these efforts have proven wasteful and ineffective.
“These refineries are a pure drain on the Nigerian economy, and it is not fair to the Nigerian people,” he said. “We should have a situation where we speak truth to ourselves and encourage private sector investment.”
He emphasized that full privatisation would drastically reduce corruption and promote accountability in the oil and gas sector.
“It’s our natural endowment. We are the sixth-largest crude oil producer in the world, yet we suffer. If you completely go private, it will be difficult for anyone to steal. It will be difficult for anybody to be unaccountable,” he argued.
Ajayi-Kadiri also identified full privatisation of public refineries and reform of the power sector as the most critical steps the government can take to support manufacturers.
“We need to address the incompetent distribution companies (DisCos) and drive investment into the power sector to guarantee stable electricity,” he said, adding that the “naira for crude” policy must also be properly funded and implemented to ensure sustainability.
On fears that privatisation could create a monopoly, especially with the emergence of the Dangote Refinery, the MAN boss dismissed such concerns, saying the government-owned refineries, if properly run, could offer healthy competition.
“I don’t subscribe to the view that we are creating a monopoly. Those four refineries are potential competitors. The problem is they are not working. Give them to people who will make them work,” he said.
Ajayi-Kadiri also defended the fuel subsidy removal policy, stating that the decision was necessary to save the economy from collapse.
“If Nigeria didn’t stop the subsidy, the subsidy would have stopped or killed us,” he stated, expressing optimism that petrol prices could fall as stability returns. “I see the price coming down to N800, and that is what manufacturers want.”
He further lamented the impact of poor power supply and insecurity on the manufacturing sector, revealing that manufacturers spent over N2 trillion on alternative energy sources in 2023 alone.
“That cost directly impacts the prices of goods and undermines our productivity,” he said, adding that addressing insecurity and power challenges was vital to attracting investment and reviving the nation’s economy.
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