LunagisthubNigeria’s Refineries: A Potential Sale to Boost Competition?
The Federal Government of Nigeria is considering selling its state-owned refineries to attract investment, boost competition, and improve efficiency in the downstream oil sector. This move is part of the government’s economic reform efforts aimed at revamping the country’s oil industry.
The four refineries in Port Harcourt, Warri, and Kaduna have a combined capacity of 445,000 barrels per day but have remained largely inactive despite significant investments in maintenance and repairs. The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, noted that the government is open to exploring options for the refineries, including sale or partnership deals, if the right technical partner with sufficient capital is found .The sale of state-owned refineries could lead to increased competition in the oil industry, driving innovation and efficiency.
Private ownership could bring in much-needed expertise and investment to revamp the refineries and improve productivity.
The sale of refineries could attract significant investment into the country, boosting economic growth and development.
The government plans to prioritize transparency and efficiency in the sale process, ensuring that the refineries are sold to capable technical partners who can revitalize and operate them sustainably. This move is part of a broader effort to reform the oil industry and promote economic growth in Nigeria .
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