Manufacturers Association of Nigeria (MAN) DG Urges Full Privatization of Refineries, Says Public Ownership a “Drain on Nigerian Economy”

The director general of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadiri, intensified calls for the federal government to fully privatize public refineries of Nigeria, describing them as symbols of waste, ineffectiveness and rooted disintegration.

His comments, made during an interview on Television’s Politics Today channels, echo an increasing national frustration concerning the repeated cycle of public spending in rehabilitation of unproductive refinery.

Ajayi -Kadiri noted that the continuous possession of the state of refineries – located in Port Harcourt, Warri and Kaduna – has not only drained public resources but did not provide significant return to the Nigerian people.

“These four refineries are pure drainage on the Nigerian economy, and it is not just for the Nigerian people,” he said. “The government should simply sell these refineries. Give them to people from the private sector who will manage them effectively and will be able to deliver. When something belongs to everyone, it does not belong to anyone. ”

Its appeal to a complete privatization comes in the middle of long -standing criticism of government spending habits, especially for moribund refineries that have continued to swallow public funds without producing refined oil products.

Ajayi-Kadiri echoes the deeply anchored anger and disillusionment shared by a large majority of Nigerians who consider the repeated promises of the revitalization of refinery as expensive illusions. Over the years, the government has paid nearly $ 3 billion in the renovation of these refineries, without any tangible production to show.

The Port Harcourt refinery alone received an investment in rehabilitation of $ 1.5 billion, awarded in 2021. That same year, the national Nigerian Petroleum Company (NNPC) announced that it had spent more than 100 billion Nairas in refinery repairs – in case of any of the facilities refined a single barrel. The Warri and Kaduna refineries have jointly suffered an additional $ 1.48 billion for their own rehabilitation programs. These enormous capital injections have given negligible results, which has led many Nigerians to question the justification of continuous public property.

The combined production of public refineries in Nigeria has remained zero or near for years, forcing the country to depend almost entirely on imported oil products – an expensive contradiction for one of the best oil producers in the world.

“We are the sixth producer of crude oil in the world, but we suffer,” said Ajayi-Kadiri. “If you become completely private, it will be difficult for anyone to fly. It will be difficult to be inexplicable. ”

Dangote Refinery: Promise or Monopoly?

The call for privatization occurs at a time when the private refinery of Dangote in Lagos begins to dominate the discourse around the refining capacity of the Nigeria. The installation of $ 19 billion was praised as a potential change in play to reduce Nigeria’s dependence on imports, but its emergence has also aroused fears of a market monopoly.

Ajayi-Kadiri rejected these concerns, arguing that if the other four refineries belonging to a government were put back to the private sector and put into service, they would naturally serve competitors in Dangote.

“I do not subscribe to the idea that we create a monopoly. These four other refineries are potential competitors. We were told that we are working, then again, that is not the case. Give them to the people who make sure that they actually work,” he said.

The man boss has also described other urgent reforms necessary to restore industrial growth, starting with the complete implementation and the financing of the Naira-For-Crude oil policy. He also called for major investments in the electricity sector to resolve the ineffectiveness of Nigeria distribution companies (Disco), which continue to leave manufacturers with little choice but to count on expensive alternative energies.

“They must ensure that” Naira for crude “policy is sustainable, adequate and sustained. In addition, we have to approach incompetent distribution companies and stimulate investments in the electricity sector to guarantee supply, “he said.

Ajayi-Kadiri revealed that manufacturers had spent more than 2 nairas billions on alternative energy sources in 2023 only due to the unreliable electricity supply, which increases the cost of production and the final prices of goods on the market.

Insecurity, he added, remains another key deterrence to investment and must be treated urgently.

“Insecurity is an increasing deterrent in investment. Companies cannot prosper when security is not guaranteed,” he said.

Elimination of fuel grants, painful but necessary

While recognizing the severe consequences of the abolition of subsidies under the administration of President Tinubu, Ajayi-Kadiri supported politics, saying that it was necessary to prevent economic collapse. Fuel prices have since increased beyond N600 per liter, triggering inflation and generalized difficulties, but it remains optimistic that prices end up lowering.

“If Nigeria had not stopped the grant, the subsidy would have stopped or killed,” he said. “It’s going to be better. I see the price died at N800, and that’s what manufacturers want. ”

Clamour growing for responsibility

Ajayi-Kadi’s call highlights a request for intensification among Nigerian stakeholders for the responsibility for the management of public assets. With 3 billion dollars already spent and little to show for this, many consider the continuous government control of refineries as unsustainable and unjustifiable.

The message from the Human CEO is that the Nigerians are tired of looking at taxpayers money paid in bottom stands while poverty deepens and basic infrastructures remain broken. It is time, he says, to put the keys from those who can actually make the engine work.