The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadiri, has called for the full privatisation of the country’s refineries, citing their inefficiency and drain on the economy.
Ajayi-Kadiri, who was a guest on Tuesday, on Channels Television’s Politics Today, argued that the government handing over the Port Harcourt, Warri, and Kaduna refineries to the private sector would ensure efficient management and productivity.
“If you ask me, the government should just sell these refineries. Give them to private sector people who will run them efficiently and be able to deliver. When something belongs to everybody, it belongs to nobody,” he said.
Ajayi-Kadiri also noted that privatising the refineries would help to reduce corruption and promote accountability in the energy sector, ensuring that the facilities are managed efficiently and productively.
Nigeria’s four state-owned refineries have faced long-standing issues of inefficiency and underperformance, while the Dangote Refinery has raised hopes of reducing fuel imports and boosting local refining.
Ajayi-Kadiri dismissed concerns about potential monopoly in the energy sector, saying that competition remained viable with the emergence of the Dangote Refinery and potential competitors from the other refineries.
The MAN DG defended the subsidy removal policy, saying it was necessary to avoid an economic collapse, and expressed optimism about price stability in the sector, hinting at a possible reduction in petrol prices.
The privatisation of state-owned refineries could lead to increased efficiency, productivity, and accountability in the energy sector, ultimately benefiting the Nigerian economy.
With manufacturers spending over N2 trillion on alternative energy in 2023 due to unreliable power supply, addressing infrastructure challenges is crucial for industrial productivity and economic growth.
