Energy professional and Tradegrid Country Manager, Jide Pratt, has called for a commercial restructuring of Nigeria’s state-owned refineries, warning that reviving the facilities will require more than political declarations and repeated turnaround maintenance.
Speaking on Lagos Television’s The Conversation on the topic, “Mr. President’s Proposed Structural Reset of Refineries,” Pratt said the rehabilitation of the Port Harcourt, Warri and Kaduna refineries must be driven by commercial viability and long-term sustainability.
Pratt noted that restoring facilities that have remained largely inactive for years presents significant engineering and logistical challenges.
He argued that a comprehensive overhaul, including re-piping and testing, could realistically take between 12 and 18 months, stressing that visible activity at a refinery does not necessarily translate into efficient or profitable operations.
He also questioned the economic justification for reviving some legacy facilities in their existing configurations, particularly the Kaduna refinery.
According to him, government should consider scrapping non-viable units or unbundling sections of complex facilities such as the Port Harcourt refinery to concentrate investment on commercially viable operations.
To strengthen energy security and market stability, Pratt proposed reducing the Nigerian National Petroleum Company Limited’s full government ownership through a 51/49 per cent public-private partnership, citing the Nigeria LNG model.
He said shared ownership could promote commercial discipline, unlock domestic financing and support more structured price adjustments, helping to cushion consumers and marketers from sudden price shocks.
COURTESY: lagostelevision.com
