The Nigerian Economic Summit Group (NESG) has urged the Federal Government to accelerate the privatization of state-owned refineries, warning that delays in critical reforms could undermine the country’s fragile economic recovery.
The call forms part of the organisation’s latest economic assessment, “NESG 2025 Q3 GDP Alert,” released this week. The report highlights a concerning slowdown in refinery-sector growth, which dropped to 5.84% in Q3 2025, down sharply from 20.5% in Q2 2025, according to fresh GDP figures.
The NESG’s recommendation also comes amid reports that the Federal Government is considering selling off the Port Harcourt, Warri, and Kaduna refineries; long-troubled facilities that have undergone repeated turnaround maintenance with little success. Government officials argue that privatisation would attract competent operators, enhance efficiency, and stimulate competition in a downstream market currently dominated by the Dangote Refinery.
Domestic Refining Still Improving, NESG Says
Despite the sectoral slowdown, the NESG praised recent gains in refining capacity, attributing improvements to increased local production, particularly from the Dangote Refinery. These gains, the Group noted, could help slash Nigeria’s hefty petroleum import bill and stabilise foreign exchange pressures.
“The robust growth in the oil refining sector signals improved local refining capacity. These gains are expected to translate into reduced petroleum import bills as the Dangote Refinery continues its operations,” the NESG stated.
However, the organisation warned that Nigeria cannot achieve full self-sufficiency unless long-delayed structural reforms—especially the commercialization and privatization of federal refineries—are completed urgently.
“To move towards full self-sufficiency in domestic refining, the government should proceed with the planned privatisation of state-owned refineries to restore their functionality as soon as possible,” the report emphasized.
