Tinubu vows return of Nigeria’s refineries to operation, gives no timeline

President Bola Tinubu has pledged to bring Nigeria's state-owned refineries back into operation following a thorough restructuring process, though he refrained from specifying a specific timeframe for their revival. The announcement was made during a meeting with the National Executive of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) at the State House in Abuja.

Prior to this, the refineries had been idled in February this year after assessments revealed they were operating at significant losses, effectively eroding national value. In response to NUPENG's call for the refineries' revival, Tinubu expressed his commitment to not allowing the substantial investments made over the years to be wasted.

He outlined a strategy that involves a detailed technical evaluation and a long-term restructuring plan geared towards making the refineries economically viable. Acknowledging the past issues that have plagued the refineries, Tinubu emphasized the government's acceptance of the inherited assets and liabilities, with the focus now being on rectifying the facilities.

This assurance arrives amid a history of failed rehabilitation attempts and repeated delays in restoring Nigeria's refining capacity, with approximately $4 billion invested in refinery rehabilitation under the previous CEO, Mele Kyari. Despite numerous failed rehabilitation efforts, Nigerian governments have remained reluctant to dispose of the state-owned refineries.

Recently, the Petroleum Products Retail Outlets Owners Association of Nigeria has also called for the resumption of operations at government-owned refineries, highlighting the potential benefits such as stabilised fuel prices, increased competition in the downstream sector, and enhanced energy security for the nation.