Manufacturers Are Crying for Nigeria’s Refineries to Be Privatised

Due to Nigeria’s long-running struggle with fuel scarcity and erratic energy supply, manufacturers are crying louder. They are tired of navigating rising costs and inefficient systems, they are now urging the federal government to let go of its grip on the country’s public refineries. 

Their message is clear, the private sector can do it better. The Manufacturers Association of Nigeria (MAN), through its Director-General, Segun Ajayi-Kadir, is calling for the full privatisation of all government-owned refineries. 

Speaking during a television appearance, Ajayi-Kadir didn’t mince words when he said the government has “no business” in refining oil. According to him, the public sector has had decades to prove itself and has largely failed. Now, it’s time for private players to take over and deliver real value.

One major proof, he says, is the Dangote Refinery. Since coming on stream, it has not only made fuel more available but has also helped reduce logistics costs for businesses and cut out layers of middlemen who once profited off Nigeria’s broken fuel supply chain. 

In his view, that’s the kind of impact that happens when efficiency is put in the right hands.

Ajayi-Kadir believes that the scrapping of fuel subsidies, though painful at first, opened the door to positive changes in the energy landscape. 

While manufacturers initially struggled with the hike in fuel prices, they are now beginning to see improvements, especially as local refining gradually replaces the wasteful cycle of exporting crude oil and importing refined fuel.

“Energy accounts for more than 40 per cent of our production costs,” he said. “When diesel and CNG become more available through local production, small and medium-sized manufacturers will finally catch a break.”

On the issue of monopoly, the MAN boss pushed back against fears that privatisation would concentrate too much power in the hands of a few. Instead, he argued that the real concern should be performance, not who is at the top. 

“It’s not about one refinery dominating,” he said, “it’s about who is delivering results.”

For Nigeria’s manufacturers, this isn’t just about oil. It’s about survival. With power supply unreliable and fuel costs unpredictable, local businesses are suffocating.

Ajayi-Kadir’s advice to the federal government is simple but sharp: step back from managing businesses and start creating the right environment for them to thrive.

The country’s four national refineries have become financial burdens, draining public resources while producing almost nothing. 

For manufacturers who rely on stable and affordable energy, this is more than a policy debate, it’s a matter of economic life or death.