The President of the Trade Union Congress (TUC), Festus Osifo, has dismissed claims that Nigeria’s state-owned refineries never worked.
In an interview on Tuesday on Channels Television’s Politics Today, Osifo explained that the problem with the refineries was not inactivity but inefficiency.
Osifo, an engineer with over 20 years of experience, stated that he understood how mechanics work and knew the difference between a system that is working and one that doesn’t.
He emphasised that the refineries did work, but their inefficiency led to their shutdown.
According to Osifo, the refineries were operating at a loss, with crude oil costing $10 million and producing products worth $9.5 million.
He added that during a visit to the Group Chief Executive Officer of NNPC Limited, the union was told the shutdown was due to “material balance,” where the value of the products being produced was lower than the value of the crude oil being fed into the refinery.
Osifo also noted that there was a technology gap, citing the separation of units in the refineries, which created a material balance challenge.
He explained that when the refineries were working 15 to 20 years ago, the old refinery would feed products into the new one, which would then refine the products to the right specification.
The TUC president urged the government to give private investors controlling stakes in the refineries, allowing them to run the facilities efficiently.
He suggested that private investors should be given a 51 per cent stake in the refineries to ensure effective management.
Nigeria has four main state-owned refineries in Port Harcourt, Warri, and Kaduna, with a combined installed capacity of about 445,000 barrels per day.
Despite rehabilitation efforts, the refineries have underperformed due to poor maintenance, inefficiency, and pipeline vandalism.
In contrast, the Dangote Refinery in Lagos had raised hopes of reducing fuel imports and boosting local refining.
With a nameplate capacity of 650,000 barrels per day, Dangote Refinery is Africa’s biggest oil refinery.
By early 2025, it was operating at about 85 per cent capacity, with plans to expand to 700,000 barrels per day before the end of the year.
