Energy Expert Urges Tinubu to Privatize Nigeria's Refineries

Energy expert Dan D. Kunle has called on President Bola Ahmed Tinubu to privatize Nigeria's four government-owned refineries, which he referred to as "diseased fingers" of the Nigerian National Petroleum Company (NNPC).

In an open letter, Kunle argued that these refineries have consumed vast public resources over decades without delivering reliable refining capacity. He noted that previous rehabilitation projects yielded little to no meaningful results.

Kunle commended Tinubu for the difficult decision to remove fuel subsidies and liberalize the foreign exchange market, suggesting that privatizing the refineries could solidify the president's legacy. He proposed that the NNPC limit its involvement and transfer the refineries to the Bureau of Public Enterprises for a transparent and competitive sale process within one year.

Kunle recommended including Chinese partners and qualified Nigerian investors in the bidding process. He emphasized that the ownership structure should allocate 85% to core investors, 5% to host states, and 10% to the federal government, warning against opaque arrangements that could lead to legal disputes.