Yemisi Izuora
The Manufacturers Association of Nigeria (MAN) has launched strong advocacy seeking the privatization of government run refineries which have been inefficiently managed.
The Association expressed confidence that those refineries under management of private investment will help Nigeria realise full value of crude oil.
The Director-General of the MAN, Segun Ajayi-Kadir, while speaking on Channels Television, called out on the federal government to fully privatize the country’s four national refineries, insisting that the private sector has shown greater capacity to drive efficiency and energy security.
Ajayi-Kadir pointed to the performance of the Dangote Refinery as proof that government has “no business doing business” in fuel refining.
According to him, the removal of fuel subsidies, while initially harsh on manufacturers, has paved the way for broader reforms in the energy sector. He stressed that private investment, like that of Dangote, has helped reduce logistics costs, cut out profiteering middlemen, and increase the availability of petroleum products.
“Before now, Nigeria was exporting crude and importing refined fuel—a tragic mismatch for a country rich in oil. But with local refining now gaining traction, especially through private efforts, we’re seeing prices come down and supply chains improve,” he said.
Ajayi-Kadir dismissed concerns about monopoly, noting that the real issue lies in the inefficiency of other players, not the dominance of one. “We should focus on performance and the value delivered to consumers,” he said.
He argued that energy costs account for over 40 per cent of manufacturing expenses, and any improvement in supply—particularly through local production of diesel and compressed natural gas—would lower production costs and revive small and medium businesses.
He also urged the government to tackle insecurity, which he says has forced 60 per cent of manufacturers in the North East to shut down, and called for reforms in the electricity distribution sector to guarantee consistent power for industrial growth.
“The government should incentivize serious investors and step back from operating businesses. The cost of maintaining inefficient state-owned refineries is unfair to the Nigerian people,” he added.