massive privatization of oil refineries – La Nouvelle Tribune

The Nigeriaan African oil giant, has long suffered from excessive dependence on imports of refined products. To remedy this situation, the government launched a vast operation to modernize and privatize its refineries. The four national refineries, including those of Port Harcourt and of Kadunawere closed in 2020 for renovation work. These aging infrastructures, with a total capacity of 445,000 barrels per day, have been a drag on the country’s economy, leading to recurring fuel shortages and increasing the import bill. However, a turning point seems to be emerging.

The refinery of Port Harcourtone of the largest, recently returned to service thanks to an investment of $1.5 billion from the African Export-Import Bank. The other refineries are also being rehabilitated. Alongside these modernization efforts, the government announced its desire to sell all of the state’s shares in these refineries. This initiative was confirmed by Sunday Darespecial communications advisor to the president Tinubu BallNovember 26, 2024. “The full privatization of refineries in Port Harcourt, Warri and Kaduna is underway. Refining and production of petroleum products will reach a steady peak with the Dangote refinery and modular refineries in operation”he said.

This project is part of a context where the country is seeking to reduce its dependence on imports of refined petroleum products, a situation which has persisted for several decades. The privatization of public refineries, coupled with the commissioning of the mega-refinery ofWhere is Dangote?should allow the Nigeria to drastically reduce its imports of petroleum products and secure its energy supply. In May 2023, the government lifted fuel subsidies. This act would have generated a saving of nearly $20 billion, according to the Nigerian Minister of Finance Wale Edun.