Refineries: PETROAN Advises FG Against Lopsided Assets Sale
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has advised the Federal Government against hasty lopsided sale of any national assets. Dr Billy Gillis-Harry, the National President of PETROAN, gave the advice in an interview with the News Agency of Nigeria (NAN), Abuja on Sunday.
Gillis-Harry made this known, following pressures on the Nigerian National Petroleum Company Limited (NNPC Ltd.) to sell the country’s refineries. He underscored the need for deep thinking and critical analysis of the refineries with major stakeholders before privatisation or sale.
Mr Bayo Ojulari, the Group Chief Executive Officer (CEO), NNPC Ltd. recently disclosed that a strategic review of the NNPC’s refineries operations/strategies was ongoing and expected to be concluded before end of 2025 According to him, the decision to sell the refineries will be based on the outcome of the reviews which it is doing currently as it grapples with challenges in their rehabilitation.
In spite of huge investments made to rehabilitate the dormant state-owned Port Harcourt, Warri and Kaduna refineries, the Port Harcourt refinery resumed operations in November 2023, but was shut down again in May for maintenance.
The NNPC Ltd. attributed some of the setbacks to outdated infrastructure and underperforming technologies. Speaking with NAN, Gillis-Harry expressed dissatisfaction on how national assets which were termed not functional always become functional after being privatised to a private company that would turn it around.
Gillis-Harry recalled that Nigeria hurriedly, without deep analysis and thinking, entered into lopsided sales or partnership agreement with an Indian company called Indorama Eleme Petrochemicals several years ago.
He said the dormant Eleme Petrochemical then was sold lopsidedly to the Indian company without deep thinking. “It took the Indian company, Indorama, to just take over that refinery and turn it into Eldorado. And they are smiling to the banks across the globe.
“Today, that company is rolling out billions and billions of dollars, and we don’t even know the benefits of that company’s operation to everyday Nigerians. Is it the same kind of experience the Port Harcourt, Warri and Kaduna refineries will now suffer.
“It is a challenge to the leadership in this country to look inwards and see the education, the management capacity and the value we present even to ourselves to see what Indorama is doing,” he said.
He explained that the dormant Eleme Petrochemicals company, which was sold, was having the same kind of issues the refineries are presently experiencing. The expert, while drawing an inference to Eleme Petrochemicals that is within the same ambience—the same economic environment of the Port Harcourt refinery—however, asked if the same thing will be done without any deep thinking?
“So, now, refineries that belonged to Nigeria that were only built in the late 60s and early 70s are now being termed as cannot work.
“So we are proud to announce to the world that since they cannot work, one of the options on the table is to sell them,” he said .
He also recalled how another national asset, the National Fertiliser Company of Nigeria (NAFCON) – the money spinner for Nigeria became dilapidated deliberately and a private limited liability company bought it over and turned it into an Eldorado.
“This is typical of how Nigeria’s economic revamping system operates, because we enter into arrangements where we privatise Federal Government enterprises and companies and a lot more.
“We can talk about so many different federal government-owned companies that have gone through the same kind of experience. So, what is wrong,” he asked
He underscored the need to review the country’s real objectives to ascertain how to grow the economy robustly and how to leave a legacy for administrative sagacity, intelligence, and technology savviness, which Nigerians never lacked.
“PETROAN had earlier recommended that the refineries should be privatised and stakeholders should be part of the process so that we can all put our eyes on our common patrimony and ensure that it works.
“If it should be done, Nigerians, especially relevant stakeholders who have passion, should drive the process. That’s our take,” the expert said. #Refineries: PETROAN Advises FG Against Lopsided Assets Sale Airtel Africa Grows Profit by 408% as Data Revenue Spikes
