The Manufacturers Association of Nigeria (MAN) has called on the federal government to fully privatise the country’s four state-owned refineries, citing the superior performance of the private sector in driving efficiency, cutting costs, and ensuring energy security.
Speaking on a television programme, MAN Director-General, Segun Ajayi-Kadir, stressed that Nigeria’s refining capacity would be better managed under private ownership. He pointed to the success of the Dangote Refinery as evidence that the government has “no business” operating in the refining sector.
“The private sector has consistently shown greater capacity to deliver results. We believe the full potential of Nigeria’s refineries can only be realised when they are fully privatised,” Ajayi-Kadir stated.
He noted that the removal of fuel subsidies, though initially painful for manufacturers, has become a catalyst for broader reforms within the energy sector. “We’re beginning to see logistics costs drop, middlemen removed, and product availability improved – largely due to local refining efforts like those at the Dangote Refinery,” he said.
Ajayi-Kadir dismissed fears of monopoly, arguing that the real concern should be inefficiency. “What matters is not how many players are in the market, but the value and performance they bring to the table,” he added.
He further highlighted that energy expenses account for over 40% of production costs in the manufacturing sector. According to him, increased local production of diesel and compressed natural gas (CNG) will drastically lower these costs and help revive small and medium-sized businesses.
“The government should focus on policy and regulation, not business operations. The continued maintenance of inefficient state-run refineries is an unfair burden on the Nigerian people,” the MAN DG concluded.
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