By Ehimario Igumbor
I read with interest Dimeji Bassir’s recent article, “Why are NNPC Owned Refineries Stuck in a Vortex of Failures?” published in Africa Oil+Gas Report. The author presents a sobering, data-driven analysis of the chronic underperformance of Nigeria’s state-owned refineries. I appreciate the attention to transparency, accountability, and technical rigor. However, I believe the discussion would benefit from a broader contextual lens and recognition of recent progress and ongoing reforms.
- Recognizing Recent Progress
While the article rightly highlights decades of inefficiency and financial losses, it is important to acknowledge that the current NNPC leadership has taken unprecedented steps towards transparency and operational reform. The publication of audited financial statements, the unbundling of NNPC into a limited liability company, and increased stakeholder engagement mark significant departures from past opacity. These reforms are not panaceas, but they lay a critical foundation for sustainable change.
- The Political Economy: A Complex Web
The article touches on corruption and inefficiency but does not fully explore the entrenched political and economic factors that have historically hampered refinery performance. Issues such as fuel subsidies, regulatory bottlenecks, and vested interests are not unique to Nigeria’s oil sector; they are systemic challenges that require coordinated policy responses beyond technical fixes. Any sustainable solution must address these broader governance and market dynamics.
- Technical Solutions Are Necessary, But Not Sufficient
The call for a comprehensive technical assessment and adoption of best practices is well-taken. However, technical solutions must be integrated with institutional reforms, capacity building, and workforce engagement. The human factor—training, motivation, and accountability of refinery staff—cannot be overlooked. Moreover, the global energy landscape is shifting towards renewables, and Nigeria must consider how its refining strategy aligns with long-term energy transition goals.
- The Role of Private and Modular Refineries
The article briefly mentions the Dangote Refinery and modular refineries but underestimates their transformative potential. Private sector participation can introduce competition, innovation, and efficiency that have eluded state-run enterprises. The government’s support for modular refineries, if properly regulated and incentivized, can help bridge the supply gap and reduce dependence on imports.
- Socioeconomic and Public Health Dimensions
Finally, the failures of the refining sector have far-reaching consequences for public health, employment, and national security. Fuel scarcity, inflation, and environmental degradation directly affect the well-being of ordinary Nigerians. Reforming the sector is not merely an economic imperative—it is a public health and social justice issue.
Conclusion
In summary, while the article offers a compelling critique of past and present challenges, a holistic approach is needed. Nigeria’s refining sector requires not only technical and managerial reforms, but also systemic changes in governance, policy, and market structure. Progress is being made, albeit slowly, and stakeholders must build on these foundations with patience, pragmatism, and a shared vision for national development.
Ehimario Igumbor, Professor of Public Health and keen student of the political economy of Nigeria’s development.
