The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to fully privatize all state-owned refineries, arguing that private sector management is key to improving operational efficiency and securing Nigeria's energy future.
Speaking during a recent television interview, MAN Director-General Segun Ajayi-Kadir emphasized that the government should step away from refinery operations altogether. "The government has no business in refining," he stated, pointing to the Dangote Refinery as a leading example of how private investments can reshape the nation's oil sector.
According to Ajayi-Kadir, the involvement of private investors has already led to improved logistics, reduced fuel costs, and greater availability of petroleum products. He noted that while the removal of fuel subsidies initially posed challenges for manufacturers, it has ultimately created room for critical reforms in the energy sector.
"Before now, Nigeria was exporting crude and importing refined fuel – a tragic mismatch for a country rich in oil," he said. "With local refining gaining traction, especially through private efforts, prices are stabilizing and supply chains are improving."
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Ajayi-Kadir also addressed fears of a monopoly in the refining industry, dismissing them as misplaced. "The issue isn't monopoly; it's inefficiency among other players. Our focus should be on performance and delivering value to consumers," he added.
Highlighting the economic stakes, he revealed that energy accounts for over 40 percent of manufacturing costs. Enhancing local production of diesel and compressed natural gas, he argued, would significantly lower expenses and drive growth across small and medium enterprises.
In his concluding remarks, the MAN chief urged the government to incentivize committed investors and fully exit the business of running refineries. "Maintaining inefficient state-owned refineries is a costly burden on the Nigerian people," he said.
