The Nigerian Society of Chemical Engineers (NSChE) has urged the Federal Government to immediately halt public funding for state-owned refineries and hand over majority equity ownership and operational control to private investors.
The society’s National President, Engr. Bayo Olarewaju-Alo, made the recommendation at a press conference titled, “Nigeria’s Moribund Refineries Need New Governance.”
Olarewaju-Alo argued that continued government spending on refinery rehabilitation should be replaced with an ownership structure that transfers operational responsibility, investment obligations and execution risks to technically competent and financially capable private investors.
According to him, repeated attempts to rehabilitate the Port Harcourt, Warri and Kaduna refineries over more than two decades had failed to deliver reliable and commercially competitive production.
He proposed a 22-month timeline for completing the privatisation process, including asset assessment, investor prequalification, due diligence, competitive bidding, regulatory approvals and transfer of ownership and operational control.
His words: “Further public rehabilitation expenditure should give way to a transparent divestment of majority equity holding to credible private investors, with enforceable obligations and professional operational control.
“Government may retain a minority, non-controlling interest to protect strategic public interests, while avoiding responsibility for financing shortfalls or day-to-day operations.
“The purpose is not simply to sell assets, but to create a governance and investment model that can deliver reliable production, commercial discipline, national value and public accountability.
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“Nigeria has spent substantial public resources over more than two decades trying to restore the Port Harcourt, Warri and Kaduna refineries.
“Despite repeated rehabilitation efforts, the refineries have not achieved reliable, sustained or competitive production.”
He also called for binding investment and production milestones, environmental safeguards, workforce protection, transparent allocation of legacy liabilities and penalties for non-performance
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