NNPC’s Four Diseased Fingers: The Refineries That Must Be Privatised
An Open Letter to the President and Commander-in-Chief of the Armed Forces, Federal Republic of Nigeria
His Excellency,
President and Commander-in-Chief of the Armed Forces,
Federal Republic of Nigeria,
State House, Aso Rock Villa, Abuja, Nigeria.
Good Afternoon, Mr. President,
With the utmost respect and humility, I write this open letter to Your Excellency. This is my first such correspondence to you since you assumed office. I have chosen to write now because I firmly believe that, after the Almighty God, the next greatest earthly responsibility rests on the shoulders of a nation’s President.
The office you occupy carries not only immense constitutional authority but also the sacred responsibility of making decisions that shape the destiny of millions of Nigerians. It is from this deep conviction, and my sincere love for our country, that I respectfully seek Your Excellency’s attention on a matter of profound national importance.
I write as a patriotic Nigerian who believes that leadership is sometimes proven not by what a President builds, but by what he has the courage to cut away. You started by belling the cat through the removal of fuel subsidy and the liberalisation of the foreign exchange market—actions no previous Nigerian President had successfully managed.
The Problem: Four “Diseased Fingers”
Mr. President, NNPC Limited has four diseased fingers attached to the body of Nigeria: the government-owned crude oil refineries—Port Harcourt Refinery I, Port Harcourt Refinery II, Warri Refinery, and Kaduna Refinery.
For decades, these refineries have failed to deliver dividends to the people of Nigeria. Since the 1980s, they have consumed money, hope, public patience, and the proceeds of our upstream oil and gas sector. Yet, they have failed to provide the nation with reliable refining security. They have become a burden Nigeria can no longer afford.
Every year, substantial revenues earned from our upstream sector are swallowed by the endless cycle of maintaining these failed downstream assets—funds that should instead strengthen our healthcare, education, security, roads, and electricity.
The Lesson of History
The “fifth finger” used to be Eleme Petrochemicals. Former President Olusegun Obasanjo demonstrated the courage to remove that asset from government control through privatisation. Today, under Indorama’s management, Eleme is one of Nigeria’s leading success stories. It is clear evidence that when government steps back from running commercial enterprises and allows competent investors to manage them, value is created, industries expand, and jobs follow.
So, why does NNPC Limited still hold onto the remaining four? Why are we still hearing the same promises of “turnaround maintenance,” “mechanical completion,” and “operations within 24 months” that have resulted in nothing but decades of disappointment?
A Call for Transparent Privatisation
Mr. President, legacy is not built by avoiding difficult decisions; it is built by taking the decisions others feared to take. I respectfully urge Your Excellency to direct the leadership of NNPC Limited to transfer these four refineries to the National Council on Privatisation and the Bureau of Public Enterprises (BPE) for a lawful, transparent, and competitive privatisation process to be concluded within one year.
To ensure this succeeds, I propose the following:
Open Competition: Let the BPE advertise the assets openly. Let qualified transaction advisers be appointed, and let reputable local and international investors compete on equal terms.
Transparency: Let the valuation be public, and let the terms of sale be transparent. Nigerians deserve to know who is buying these assets, what they are paying, their investment plans, and the guarantees they provide.
Proposed Structure: A practical ownership structure could allocate 85% to core investors, 5% to the respective host states, and retain 10% for the Federal Government. This would minimize political interference, protect host communities, and preserve a strategic national stake.
No Back-Door Deals: Do not call privatisation a “technical partnership,” an “evaluation,” or a “collaboration.” Nigeria has suffered enough from opaque transactions. Any arrangement lacking transparency invites litigation, arbitration, and the potential seizure of national assets abroad.
Conclusion
If the reported Chinese partners are genuinely interested, they should participate openly in the bidding process. Let them demonstrate their capacity and plans before the Nigerian people.
Mr. President, release Nigeria from the burden of these failed assets. Allow NNPC Limited to focus on its core mandates: expanding upstream production, securing crude supply, protecting national reserves, and strengthening infrastructure.
The time for endless rehabilitation has passed; the time for decisive reform has arrived. History will record what is done with these four refineries. Future generations will judge whether this administration finally ended decades of waste or merely prolonged them.
With courage, transparency, and fidelity to the law, Your Excellency has the opportunity to remove these “diseased fingers,” restore strength to our economy, and leave behind a legacy of bold reform.
Respectfully submitted,
Dan D. Kunle
Writing from Abuja