RismadarVoice Reporters
October 20, 2026
The Nigerian Society of Chemical Engineers (NSChE) has called on the Federal Government to transfer majority ownership and operational control of Nigeria’s underperforming state-owned refineries to competent private investors, arguing that a new management structure is necessary to restore sustainable petroleum refining.
The society’s National President, Engr. Bayo Olarewaju-Alo, made the recommendation during a press conference themed Nigeria’s Moribund Refineries Need New Governance.
He expressed concern over repeated government-funded rehabilitation programmes at the Port Harcourt, Warri and Kaduna refineries, saying the investments had failed to deliver sustained commercial production over the past two decades.
According to Olarewaju-Alo, Nigeria requires a fundamental restructuring of refinery ownership and management rather than continued reliance on public funding for rehabilitation.
He proposed a transparent, competitive privatisation process that would attract investors with the financial resources, technical expertise and operational capacity to manage the facilities effectively.
The NSChE president recommended that the entire process be concluded within 22 months, covering asset valuation, investor prequalification, due diligence, competitive bidding, regulatory approvals and the transfer of ownership.
Under the proposed arrangement, qualified private investors would acquire majority equity and assume responsibility for financing rehabilitation, managing operations and meeting agreed production targets.
The Federal Government could retain a minority shareholding to protect strategic national interests, but would no longer be responsible for funding operational losses or managing the refineries’ daily activities.
Olarewaju-Alo stressed that the proposed reform should not simply involve selling government assets but establishing a commercially viable management system capable of ensuring accountability, efficiency and consistent petroleum production.
He also recommended legally enforceable investment commitments, measurable performance targets and penalties for investors who fail to fulfil their obligations.
The society further called for environmental safeguards, protection of workers’ interests and transparent arrangements for resolving existing financial and operational liabilities.
The proposal comes amid continuing public debate over the future of Nigeria’s government-owned refineries and the effectiveness of previous rehabilitation expenditure.
The NSChE maintained that credible private-sector participation, supported by strong regulatory oversight, could improve operational efficiency and reduce the financial burden associated with maintaining non-performing public assets.
The recommendation remains a proposal by the professional body, and no government decision to implement the suggested 22-month privatisation programme has been announced.
