The Manufacturers Association of Nigeria (MAN) has recommended that the federal government fully privatize the country’s four national refineries to ensure they operate at optimal capacity. Segun Ajayi-Kadir, MAN’s Director-General, expressed this viewpoint during a televised discussion, stressing that private sector management is crucial for efficiency and energy security.
Ajayi-Kadir cited the Dangote Refinery’s success as evidence that private investors can manage refineries more effectively than government entities. He argued that government involvement in refining operations is unnecessary and counterproductive.
He also noted that the recent removal of fuel subsidies, although initially difficult for manufacturers, is proving beneficial by encouraging broader reforms within the energy sector. “Nigeria was exporting crude oil and importing refined petroleum products, which was counterintuitive for an oil-rich nation,” he said. “Local refining efforts, especially by private companies, are now helping to lower prices and improve supply chain reliability.”
Regarding concerns about monopoly, Ajayi-Kadir dismissed them, emphasizing that inefficiency among other players is the real challenge. He suggested that the focus should be on the quality of service and consumer benefits.
Ajayi-Kadir highlighted that energy expenses constitute a significant portion of manufacturing costs, over 40 percent, and improving local production of key fuels like diesel and compressed natural gas would reduce costs and support small and medium enterprises.
He urged the government to create incentives for serious investors and to exit the business of running refineries, stating that maintaining inefficient state-owned refineries imposes an unfair burden on Nigerians.