Energy experts have advised the federal government to deepen partnerships with credible investors to accelerate the revival of the country’s refineries and strengthen local fuel production.
They said collaboration with technically capable partners would help improve refinery operations, reduce dependence on imported petroleum products, and support the country’s drive toward energy security.
The experts spoke in separate interviews on Monday in Lagos, reacting to a proposed partnership between the Nigerian National Petroleum Company Ltd (NNPCL) and Chinese firms to rehabilitate and operate the nation’s refineries.
Ayodele Oni, partner and chairman of the Energy and Natural Resources Practice Group at Bloomfield Law Practice, said the proposed arrangement is a positive step that could complement ongoing reforms in the oil and gas sector.
“It is commendable and worth exploring because the NNPCL, which manages the refineries, might not need to commit substantial funds to the arrangement.
“In the past, large sums were invested in turnaround maintenance, but the results did not significantly improve refining output,” Mr Oni said.
He added that allowing partners to hold equity stakes could introduce global best practices in refinery management and encourage healthy competition within the downstream sector.
Mr Oni noted that improved local refining capacity would ultimately help stabilise fuel supply and moderate prices over time.
Similarly, Joseph Nwakwue, former chairman of the Society of Petroleum Engineers (SPE), said attracting technically competent partners would strengthen efforts to restore the refineries to full operation.
“I hope the discussions will bring in the right partners with the financial strength and technical expertise to rehabilitate and operate the refineries efficiently.
“It is in the national interest for the state-owned refineries to work optimally,” Mr Nwakwue said.
He explained that collaboration with experienced industry operators could improve operational efficiency and ensure sustainable management of the facilities.
Also, Moses Igbrude, national coordinator of the Independent Shareholders Association of Nigeria, said that partnerships between government and private investors were widely adopted globally to manage large industrial assets.
“It is a practical option that allows investors to bring capital and expertise while supporting government efforts to strengthen the refining sector,” Mr Igbrude said.
He, however, urged authorities to maintain strong regulatory oversight to ensure transparency and protect national interests in the partnership arrangement.
The group chief executive officer of NNPCL, Bayo Ojulari, recently disclosed that the company was in talks with a Chinese firm over a potential partnership involving one of Nigeria’s state-owned refineries.
Mr Ojulari disclosed this during the Nigerian International Energy Summit, noting that long-term operational partnerships could complement ongoing reforms aimed at improving efficiency and sustainability in Nigeria’s refining sector.
(NAN)