The Manufacturers Association of Nigeria (MAN) has urged the federal government to privatize all state-owned refineries to enhance operational efficiency and energy security. Segun Ajayi-Kadir, Director-General of MAN, made this appeal during a recent television interview, emphasizing the superior capacity of private investors to manage refineries effectively.
Ajayi-Kadir pointed to the Dangote Refinery as a prime example of how private sector involvement can transform Nigeria’s refining landscape. “The government has no business in refining,” he asserted, highlighting that the private sector’s management has led to improved logistics, reduced costs, and greater availability of petroleum products.
He further noted that the removal of fuel subsidies, though initially challenging for manufacturers, has opened doors for essential reforms in the energy sector. “Before now, Nigeria was exporting crude and importing refined fuel – a tragic mismatch for a country rich in oil,” Ajayi-Kadir remarked. “But with local refining now gaining traction, especially through private efforts, we’re seeing prices come down and supply chains improve.”
Addressing fears about monopolistic dominance, he dismissed such concerns, stating the real problem is inefficiency among other players rather than the presence of a dominant refinery. “We should focus on performance and the value delivered to consumers,” he added.
Highlighting the economic impact, Ajayi-Kadir explained that energy costs make up over 40 percent of manufacturing expenses. He argued that improved local production of diesel and compressed natural gas would significantly reduce production costs and stimulate growth in small and medium enterprises.
He concluded by calling on the government to incentivize serious investors and withdraw from direct involvement in refinery operations. “The cost of maintaining inefficient state-owned refineries is unfair to the Nigerian people,” he said. Okay.ng reports.
