By Bolaji Peters(Siwes student, Polytechnic Iresi)
The National Petroleum Company Limited’s move to hand over its major refinery to private management falls short of true privatization, missing out on potential benefits.
Peters emphasizes the potential for industry growth, increased government revenue, and improved livelihoods for Nigerians through complete privatization.
The Nigerian National Petroleum Company Limited’s recent completion of the Port Harcourt Refinery’s rehabilitation, funded by a $1.5 billion loan, has sparked debate.
Peters deems the decision to seek private operators while retaining overall control as a half-measure, questioning its alignment with public interests and international best practices.
Highlighting substantial expenditures on state-owned refineries and staff salaries, Peters suggests that these costs strain public funds.
Advocating for a level playing field and increased competition, Peters urges the Bola Tinubu government to reduce NNPC’s influence in the sector to foster growth in privately-owned refineries.
Pointing to the impact of oil theft and vandalism, Peters argues that the government should prioritize addressing these issues over direct control of refineries.
Citing alarming figures, such as 400,000 barrels lost daily and $10 billion in losses in 2022, Peters emphasizes the environmental concerns associated with oil theft.
The article underscores Shell’s divestment from Nigerian onshore assets due to operational challenges, oil theft, and legal issues.
Peters contends that addressing these concerns should be a governmental priority to prevent further departures, expressing worries about the potential negative impact on Nigeria’s economy.
Advocating for selling refineries to international companies, Peters suggests that this move will attract Foreign Direct Investment, cut government costs, and eliminate the need for refinancing.
Criticizing the previous administration’s policies of maintaining government control, Peters calls for a more liberal approach under Tinubu’s leadership to revitalize the sector.
