Speaker Abbas seeks privatisation of Nigeria’s refineries

During a meeting with the management of NNPCL, Tajudeen Abbas, the Speaker of the House of Representatives, suggested that the oil refineries in the country should be privatized in order to improve their efficiency.

He expressed his disappointment with the current state of the refineries and the amount of money being spent on workers who are not producing enough.

Mr Abbas also emphasized the need for the refineries to have multiple uses and suggested that the management should explore ways to turn around the losses incurred over the years. He believes that privatization is the way forward and that the government should not deceive itself into thinking that it can run businesses effectively.

It has become evident that certain sectors of NNPC business, such as the refineries, are better suited for private sector management. The inefficiencies of our refineries will become even more apparent once the Dangote refinery begins operations and introduces competition. Therefore, it is crucial that we prioritize the privatization of our refineries as part of our main objectives. This will ensure their active participation and enable them to compete with upcoming refineries in the near future.

Abbas emphasized the significance of NNPC’s role in Nigeria’s economic development and assured the House of Representatives’ support in ensuring the company’s success. He expressed concern over the detrimental impact of oil theft on revenue, forex availability, and inflation in the country. To address this issue, the House has established a special committee on oil theft to engage with stakeholders and find effective solutions.

Mr. Kyari, in his earlier statement, stated that all refineries would be fully operational by the end of 2024, transforming Nigeria into a net exporter of petroleum products. He attributed the poor performance of government-owned refineries over the years to subsidies and highlighted the positive impact of subsidy removal in attracting private sector investments. He provided a timeline for the rehabilitation and operation of the Port Harcourt, Warri, and Kaduna refineries, emphasizing the commitment of NNPC to these goals.

With various initiatives, including refinery rehabilitation, the efforts of small-scale refiners, and the establishment of the Dangote Refinery, Nigeria is poised to become a net exporter of petroleum products by 2024.

By the end of 2024, we will no longer be discussing fuel importation. I am filled with great optimism that this vision will become a reality,” he enthusiastically declared.

According to Mr. Kyari, the company had previously refrained from disclosing its financial statements. However, this practice has now changed, and all the company’s accounts from 2018 onwards are readily available to the public.

Mr. Kyari projected that the government would receive a substantial revenue of N4.5 trillion from the company by the end of 2023. He emphasized that NNPCL is committed to delivering value to its shareholders in alignment with the objectives outlined in the Petroleum Industry Act.

Furthermore, Mr. Kyari assured that the company has implemented a robust supply plan to ensure an uninterrupted fuel supply during the Christmas season and beyond. He confidently stated that no individual or group would be able to hold the country hostage in terms of fuel availability.