The Nigerian National Petroleum Company (NNPC) has announced plans to hand over the Warri and Kaduna refineries to private operators as part of its efforts to revamp the country’s refining capacity.
According to a statement released by the NNPC, the decision is aimed at increasing efficiency, reducing costs, and improving the overall performance of the refineries.
“The handover is expected to take place within the next six months, and we are already in talks with potential investors,” said the NNPC’s Group Managing Director.
The Warri and Kaduna refineries have been underperforming for several years, with capacities utilization rates of around 20%. The NNPC hopes that private sector involvement will bring in much-needed investment and expertise to revamp the refineries.
Reactions from Stakeholders
The decision has received mixed reactions from stakeholders. While some have welcomed the move as a step in the right direction, others have expressed concerns about job losses and the potential for private operators to prioritize profits over national interests.
“This is a positive development for the oil and gas industry,” said an industry analyst. “Private sector involvement can bring in much-needed investment and expertise to revamp the refineries.”
However, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has expressed concerns about the potential impact on workers.
“We urge the NNPC to ensure that the interests of workers are protected during this transition,” said the union’s president.
Government’s Assurance
The Federal Government has assured that the handover will not lead to job losses and that the interests of workers will be protected.
“We will work closely with the NNPC and private operators to ensure a smooth transition,” said the Minister of State for Petroleum Resources.
The handover is part of the government’s broader efforts to reform the oil and gas sector and increase Nigeria’s refining capacity.
