KEY POINTS
- Petroan demands privatization of Port Harcourt refinery.
- Group warns public control slows reform and progress.
- Concerns raised over investor confidence in energy sector.
Stakeholders in the industry are putting increasing pressure on Nigeria’s national oil company for maintaining control of the Port Harcourt refinery.
The Nigerian National Petroleum Company Ltd. (NNPCL) has come under fire from the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) for refusing to allow private sector involvement in the facility. According to the group, the current model is out of date and could jeopardize long-term profitability and efficiency.
Petroan advocates for refinery privatization
According to Vanguard news, PETROAN claims that public ownership of the formerly notable refining complex has hindered innovation and delayed advancement. The group maintains that accountability and operational improvement can only be guaranteed through privatization.
More attention is being paid to the refinery ownership model
The viability of government-run refinery management has also been questioned by observers. The majority of Nigeria’s previous attempts to modernize public refineries have not been successful.
Demand openness in the management of energy assets
Industry participants claim that the decision to keep complete government control deters private investment and runs counter to the nation’s larger privatization objectives.
