NSChE Proposes 22-Month Privatisation Plan for Nigeria’s Failed Refineries

The Nigerian Society of Chemical Engineers (NSChE) has proposed a 22-month programme to transfer majority ownership and operational control of Nigeria’s moribund government-owned refineries to credible private investors.

The society said the Federal Government should end further public expenditure on rehabilitation and adopt a transparent, competitive privatisation framework that places investment, operational and execution responsibilities on qualified private-sector operators.

Its National President, Engr. Bayo Olarewaju-Alo, presented the proposal at a press conference entitled, “Nigeria’s Moribund Refineries Need New Governance.”

He said the continued failure of rehabilitation efforts at the Port Harcourt, Warri and Kaduna refineries over more than two decades demonstrated the need for a fundamental change in their ownership and management arrangements.

Under the proposal, the privatisation exercise would be completed within 22 months, with the process covering asset assessment, prequalification of investors, due diligence, competitive bidding, regulatory approvals and the eventual transfer of ownership and operational control.

Olarewaju-Alo stressed that the objective should go beyond selling government assets to establishing a sustainable governance framework capable of delivering consistent output, commercial discipline and accountability.

“Further public rehabilitation expenditure should give way to a transparent divestment of majority equity holding to credible private investors, with enforceable obligations and professional operational control.

“Government may retain a minority, non-controlling interest to protect strategic public interests, while avoiding responsibility for financing shortfalls or day-to-day operations.

“The purpose is not simply to sell assets, but to create a governance and investment model that can deliver reliable production, commercial discipline, national value and public accountability,” he said.

The NSChE president expressed concern that despite substantial public investment in the three refineries over more than two decades, they had yet to achieve reliable, sustained and competitive production.

“Nigeria has spent substantial public resources over more than two decades trying to restore the Port Harcourt, Warri and Kaduna refineries. Despite repeated rehabilitation efforts, the refineries have not achieved reliable, sustained or competitive production,” he stated.

Society seeks enforceable investor commitments

Beyond the proposed transfer of ownership, the chemical engineers called for binding investment and production milestones to ensure that successful bidders deliver measurable results.

They also advocated environmental safeguards, protections for workers and transparent arrangements for allocating legacy liabilities associated with the facilities.

The society further recommended penalties for investors who fail to meet their contractual obligations, stressing the importance of enforceable commitments in preventing another cycle of failed rehabilitation efforts.

Under the proposed model, the government could retain a minority stake to protect strategic public interests without remaining responsible for operational management or financing shortfalls.

The NSChE said the proposed framework should help establish commercially viable refineries while strengthening professional management, public accountability and the effective use of national assets.

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