1.5bn refinery failure – Former Vice President Atiku Abubakar reaffirmed that Nigeria’s state-owned refineries should be privatised. He spoke after the Nigerian National Petroleum Company Limited (NNPCL) admitted that the $1.5 billion spent on the Port Harcourt Refinery failed to deliver profit or efficiency. Consequently, Atiku claims his long-standing position has been proven correct.
1.5bn refinery failure: Atiku Reacts to NNPCL Report
Atiku issued a statement on his official social media platform on Sunday. He responded directly to NNPCL CEO Bayo Ojulari, who revealed that operations at the refineries stopped due to “monumental loss.” Despite heavy spending on maintenance and contractors, the facilities produced little economic value. As a result, Atiku said the government wasted billions of naira.
“For years, I warned that spending scarce public funds on failing refineries would fail,” Atiku said. “NNPCL’s admission today confirms that my call for privatisation was right.”
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Privatisation Remains the Best Solution
Atiku emphasized that the rescue and restart of refineries appear politically motivated rather than economically sound. Additionally, he noted that billions of naira went into salaries and operations for facilities that barely produce fuel. “Paying huge salaries to non-productive facilities does not serve Nigeria’s interest,” he added.
He also warned that partial private involvement might repeat past failures. Therefore, he recommends full privatisation to attract serious investment and ensure accountability.
Economic and Political Implications
Nigeria continues to struggle with unprofitable state-owned refineries. Consequently, the country depends heavily on imported petrol despite being Africa’s largest crude oil producer. Meanwhile, the Port Harcourt setback highlights deep challenges, including weak technical capacity, high operating costs, and mismanagement.
Critics argue that past privatisation efforts yielded mixed results. However, supporters insist that decisive privatisation could improve efficiency, attract investment, and free public funds for critical needs. As a result, it could strengthen the oil sector and the national economy.
Next Steps for Reform
As discussions continue on reviving Nigeria’s refining capacity, Atiku’s renewed call adds pressure on policymakers. Consequently, bold reforms appear necessary to make Nigeria’s oil sector sustainable, profitable, and attractive to investors. Additionally, the government may need to explore strategic partnerships to modernize operations efficiently.
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