The Nigerian Economic Summit Group (NESG) has urged the Federal Government to accelerate the privatisation of state-owned refineries, saying that the move is essential to boosting domestic oil production and reducing Nigeria’s costly reliance on imported petroleum products.
The call is contained in the NESG’s new economic review, “2025 Q3 GDP Alert,” which highlights the sharp drop in refinery sector growth, from 20.5 per cent in Q2 2025 to 5.84 per cent in Q3 2025.
Privatisation is needed to restore refinery capacity
NESG’s recommendation comes as the Federal Government considers selling its refineries in Port Harcourt, Warri, and Kaduna to attract private capital, improve efficiency, and stimulate competition in a market currently dominated by the Dangote Refinery.
Despite the slowdown, the report notes improvements in Nigeria’s refining capacity, saying increased local output is easing pressure on foreign exchange and cutting the nation’s import bill. “The robust growth in the oil refining sector signals improved local refining capacity. These gains are expected to translate into reduced import bills as the Dangote Refinery continues operations,” NESG said.
But the group stressed that Nigeria cannot reach full self-sufficiency without urgent reforms, especially the commercialisation and privatisation of the government-owned plants, which have remained largely idle. “To move towards full self-sufficiency, the government should proceed with the planned privatisation of state-owned refineries to restore their functionality as soon as possible,” NESG added.
Growth is improving, but still fragile
NESG also noted that the government’s economic reforms since mid-2023 are beginning to yield results, but warned that the progress remains fragile without bigger structural changes.
The group praised the agricultural sector’s performance but said targeted interventions are needed to address persistent challenges faced by industry players.
Background: NNPCL is searching for technical partners
In November, NNPCL confirmed it is seeking technical equity partners to manage and operate the Port Harcourt, Warri, and Kaduna refineries at international standards.
However, the state oil company had earlier ruled out selling the Port Harcourt Refining Company, insisting on completing ongoing rehabilitation.
The refinery, which was shut for a scheduled 30-day maintenance on May 24, 2025, has now been idle for more than 80 days with no clear update under the new NNPCL leadership.
