MorGANABLE politics/Governance
Their position comes amid a renewed national debate over the future of Nigeria’s state-owned refineries, following President Tinubu’s recent declaration that the facilities would be restored to full operation and repositioned to deliver profitability.
KaNo—
Petroleum marketers in Nigeria have thrown their weight behind President Bola Tinubu’s determination to revive the country’s long-dormant refineries, firmly rejecting former President Olusegun Obasanjo’s assertion that the facilities would never function effectively again.
The marketers, under the aegis of the Petroleum Product Retail Outlet Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed confidence in the Federal Government’s renewed efforts to rehabilitate the Port Harcourt, Warri, and Kaduna refineries, arguing that the country cannot afford to abandon such critical national assets.
Their position comes amid a renewed national debate over the future of Nigeria’s state-owned refineries, following President Tinubu’s recent declaration that the facilities would be restored to full operation and repositioned to deliver profitability.
Speaking during a recent meeting with leaders of the Nigeria Union of Petroleum and Natural Gas Workers at the Presidential Villa in Abuja, Tinubu assured Nigerians that the refineries would return to operation but stressed that mere functionality would not be sufficient.
“The refineries you mentioned are going to come back to work. We’re building a very firm research and structural reworking of the economy around them. An ordinary flame and smoke of a refinery doesn’t mean it’s working until it is profitable and yields the value for which it was built,” the President said.
Tinubu also acknowledged past failures in managing the refineries but emphasized that his administration had taken full responsibility for the inherited challenges.
“I am not a man who looks back. I have accepted the assets and liabilities of my predecessors. It is my responsibility now to fix them and make them work for the greatest good of Nigerians. I take responsibility for that, and I’m going to do it,” he added.
Obasanjo Calls For PPP
However, Obasanjo has consistently maintained that government-owned refineries are inefficient and unsustainable, advocating instead for a public-private partnership (PPP) model.
Drawing from his experience in office, the former president argued that the refineries were unlikely to succeed under state control.
“One of the lessons I learnt is that PPP works,” Obasanjo said, referencing the Nigeria Liquefied Natural Gas project, which operates with a majority private-sector stake. “As for the NNPC-managed refineries, I said to people that they will never work.”
Obasanjo further recalled that during his administration, efforts to involve international oil companies in managing the refineries were unsuccessful.
He also disclosed that business mogul Aliko Dangote had once offered $750 million for a majority stake in two of the refineries, but the deal was reversed by the late President Umaru Musa Yar’Adua following pressure from stakeholders within the Nigerian National Petroleum Corporation.
16bn Dollars Spent On Nigerian Refineries
The former president lamented that Nigeria had since spent an estimated $16 billion on the refineries without achieving sustainable output, describing the expenditure as nearly equivalent to the cost of building a modern, large-scale refinery such as the Dangote Refinery.
Despite these concerns, petroleum marketers insist that the refineries remain viable if properly managed.
“If President Tinubu says he will make the refineries work, I believe he will. The age of our refineries is not the issue. There are older refineries in other parts of the world that are still functioning efficiently,” he said.
Gillis-Harry acknowledged that the significant funds previously spent on turnaround maintenance without tangible results remained a concern but argued that the current administration appears to be adopting a different approach.
“That is the bad news—that so much money was spent and the refineries did not work. But the President wants to try again, and we believe this time will be different,” he stated.
He dismissed fears that fresh investments could be mismanaged, citing recent policy changes aimed at improving transparency and accountability in the Nigerian National Petroleum Company Limited’s operations.
“The financial management structure has changed. With the new executive orders and reforms, we expect a more disciplined and transparent process,” he said.
Gillis-Harry also urged Nigerians not to abandon the refineries, particularly in light of global energy uncertainties.
“We cannot throw away assets as important as these. Global conflicts, like tensions in the Middle East, have shown us how vulnerable energy supply chains can be. Nigeria must strengthen its domestic capacity,” he added.
According to him, PETROAN believes that with improved financial discipline and the engagement of competent technical partners, the refineries can still become commercially viable.
“Get the right technical team and partners, and there is no reason why the refineries should not work,” he said.
IPMAN Support Federal Government
Similarly, the Independent Petroleum Marketers Association of Nigeria echoed support for the Federal Government’s plan, expressing optimism that the current strategy would yield better results than previous attempts.
IPMAN National Vice President, Hammed Fashola, said while Obasanjo’s skepticism was understandable given past experiences, Tinubu’s confidence was equally justified.
“Obasanjo’s position is based on what has happened before, but the current administration is taking a different approach. That is why we believe the refineries can work this time,” Fashola said.
He described the new rehabilitation model as more transparent and less prone to corruption, noting that this had restored confidence among stakeholders in the downstream petroleum sector.
“The approach now is straightforward and devoid of corruption. That gives us hope that the refineries will finally function as expected,” he added.