Editorial
Sell Refineries, Now!

About a forthnight ago, Nigerians were shocked with the news that the four refineries owned by the Federal Government recorded a total loss of N406.62 billion in two years. In fact, the audited report of the refineries located in Port Harcourt, Kaduna and Warri with a combined capacity of 445,000 barrels per day have been running at a loss for more than 10 years now.
Apart from operating far below their installed capacity over the years, forcing the country to rely largely on importation of refined petroleum products, they have become huge drain pipes for the country. They also, have remained in a state of disrepair for many years despite several reported repairs and the often bandied Turn-Around-Maintenance, TAM.
According to the latest audited financial statements of the plants, the Kaduna Refinery recorded a loss of N64.34 billion in 2018, down from N111.89 billion in 2017, while the Warri Refinery posted a loss of N44.44 billion in 2018, compared to N84.60 billion in the preceding year. Port Harcourt Refinery on its part lost N55.76 billion in 2017 and N45.59 billion in 2018.
To add insult to injury, the Group Managing Director, GMD, Nigerian National Petroleum Corporation, NNPC, Mallam Mele Kyari last week at a summit organised by Seplat told the country that all the refineries were idle.
“Today, unfortunately, all our four refineries are down. “In Nigeria today, we are importing practically every petroleum product that we consume in this country. “But are working to make sure that we are able to fix our refineries”, the GMD told the summit.
Unfortunately, The Tide does not agree with Mallam Kyari. We believe that the nation has had enough of trying to fix the refineries. Past experiences have shown that such endeavours would be efforts in futility, an exercise that would end up frittering away scarce resources and lining the pockets of private individuals, while the refineries remain comatose.
We are also worried by the GMD’s pronouncement that plans were on to repair the refineries again. Indeed, past attempts to repair or turn around the refineries have left the plants worse than they were and billions of naira spent to no positive effect. This sad merry-go-round has left the national assets as huge liabilities and drain on the economy. Moreso, the idle and moribund refineries are monthly serviced with humongous grants, imprest and other expenses with staff earning luxury salaries, while contributing next to nothing to the national economy. In addition, staff of these plants still draw on national resources for estacodes for mostly phantom seminars, workshops and trainings across the globe.
That is why The Tide believes that it is time that the refineries are privatised or sold outrightly, without further delay. We say so because government, especially in Nigeria, has proven not to be a good businessman. Rather than sink another round of billions of naira that would serve better in other areas of our national economy in the refineries, only to continue to depend on importation for our domestic needs, the Federal Government should divest in the refineries without delay.
We expect the government to immediately put in motion machineries that would lead to the eventual sale of the bleeding assets. We think that rather than contemplate further investment in the refineries under any guise, the Federal Government should take a second but critical look at the issues surrounding the inability of private investors to build refineries, especially, the modular model in Nigeria.
According to the Department of Petroleum Resources, DPR, there are a total of 38 proposed modular refineries with capacities ranging from 5,000 barrels per day to 30,000 bpd, and a total capacity of 1.35 million bpd. However, out of the 44 refinery licences given out to private investors over the years, only a couple of projects, including the one being built by Dangote Industries Limited in Lagos, are underway.
It is therefore, pertinent that the Federal Government seeks ways to motivate the private investors to get to work and set up refineries that will not only service domestic needs but meet demands from other countries, rather than recycling the ineffective and wasteful venture of the government-owned refineries.
Indeed, the process of divesting and eventual sale of the refineries would neither be easy nor without turmoil. But the government must muster the political will and boldness to deal with the situation. Afterall, former national institutions like the NICON-NOGA Hilton, National Electric Power Authority, NEPA, NITEL, among others have been privatised or sold off.
We expect the appropriate authority to commence serious engagement with relevant stakeholders on the modalities of ending government’s involvement in the moribund refineries. We take this stand with the belief that the country can no longer afford to waste scarce resources and indirectly patronise private individuals who feed fat on the malfeasance that are Nigerian refineries, while ordinary Nigerians bear the brunt of the vicious circle.
Editorial
No To Political Office Holders’ Salary Hike
Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has unveiled a gratuitous proposal to increase the salaries of political and public office holders in the country. This plan seeks to fatten the pay packets of the president, vice-president, governors, deputy governors, and members of the National and State Assemblies. At a time when the nation is struggling to steady its economy, the suggestion that political leaders should be rewarded with more money is not only misplaced but insulting to the sensibilities of the ordinary Nigerian.
What makes the proposal even more opprobrious is the dire economic condition under which citizens currently live. The cost of living crisis has worsened, inflation has eroded the purchasing power of workers, and the naira continues to tumble against foreign currencies. The majority of Nigerians are living hand to mouth, with many unable to afford basic foodstuffs, medical care, and education. Against this backdrop, political office holders, who already enjoy obscene allowances, perks, and privileges, should not even contemplate a salary increase.
It is, therefore, not surprising that the Socio-Economic Rights and Accountability Project (SERAP) has stepped in to challenge this development. SERAP has filed a lawsuit against the RMAFC to halt the implementation of this salary increment. This resolute move represents a voice of reason and accountability at a time when public anger against political insensitivity is palpable. The group is rightly insisting that the law must serve as a bulwark against impunity.
According to a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare, the commission has been dragged before the Federal High Court in Abuja. Although a hearing date remains unconfirmed, the momentous step of seeking judicial redress reflects a determination to hold those in power accountable. SERAP has once again positioned itself as a guardian of public interest by challenging an elite-centric policy.
The case, registered as suit number FHC/ABJ/CS/1834/2025, specifically asks the court to determine “whether RMAFC’s proposed salary hike for the president, vice-president, governors and their deputies, and lawmakers in Nigeria is not unlawful, unconstitutional and inconsistent with the rule of law.” This formidable question goes to the very heart of democratic governance: can those entrusted with public resources decide their own pay rises without violating the constitution and moral order?
In its pleadings, SERAP argues that the proposed hike runs foul of both the 1999 Nigerian Constitution and the RMAFC Act. By seeking a judicial declaration that such a move is unlawful, unconstitutional, and inconsistent with the rule of law, the group has placed a spotlight on the tension between self-serving leadership and constitutionalism. To trivialise such an issue would be harum-scarum, for the constitution remains the supreme authority guiding governance.
We wholeheartedly commend SERAP for standing firm, while we roundly condemn RMAFC’s selfish proposal. Political office should never be an avenue for financial aggrandisement. Since our leaders often pontificate sacrifice to citizens, urging them to tighten their belts in the face of economic turbulence, the same leaders must embody sacrifice themselves. Anything short of this amounts to double standards and betrayal of trust.
The Nigerian economy is not buoyant enough to shoulder the additional cost of a salary increase for political leaders. Already, lawmakers and executives enjoy allowances that are grossly disproportionate to the national average income. These earnings are sufficient not only for their needs but also their unchecked greed. To even consider further increments under present circumstances is egregious, a slap in the face of ordinary workers whose minimum wage remains grossly insufficient.
Resources earmarked for such frivolities should instead be channelled towards alleviating the suffering of citizens and improving the nation’s productive capacity. According to United Nations statistics, about 62.9 per cent of Nigerians were living in multidimensional poverty in 2021, compared to 53.7 per cent in 2017. Similarly, nearly 30.9 per cent of the population lives below the international poverty line of US$2.15 per day. These figures paint a stark picture: Nigeria is a poor country by all measurable standards, and any extra naira diverted to elite pockets deepens this misery.
Besides, the timing of this proposal could not be more inappropriate. At a period when unemployment is soaring, inflation is crippling households, and insecurity continues to devastate communities, the RMAFC has chosen to pursue elite enrichment. It is widely known that Nigeria’s economy is in a parlous state, and public resources should be conserved and wisely invested. Political leaders must show prudence, not profligacy.
Another critical dimension is the national debt profile. According to the Debt Management Office, Nigeria’s total public debt as of March 2025 stood at a staggering N149.39 trillion. External debt obligations also remain heavy, with about US$43 billion outstanding by September 2024. In such a climate of debt-servicing and borrowing to fund budgets, it is irresponsible for political leaders to even table the idea of inflating their salaries further. Debt repayment, not self-reward, should occupy their minds.
This ignoble proposal is insensitive, unnecessary, and profoundly reckless. It should be discarded without further delay. Public office is a trust, not an entitlement to wealth accumulation. Nigerians deserve leaders who will share in their suffering, lead by example, and prioritise the common good over self-indulgence. Anything less represents betrayal of the social contract and undermines the fragile democracy we are striving to build.
Editorial
No To Political Office Holders’ Salary Hike
Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has unveiled a gratuitous proposal to increase the salaries of political and public office holders in the country. This plan seeks to fatten the pay packets of the president, vice-president, governors, deputy governors, and members of the National and State Assemblies. At a time when the nation is struggling to steady its economy, the suggestion that political leaders should be rewarded with more money is not only misplaced but insulting to the sensibilities of the ordinary Nigerian.
What makes the proposal even more opprobrious is the dire economic condition under which citizens currently live. The cost of living crisis has worsened, inflation has eroded the purchasing power of workers, and the naira continues to tumble against foreign currencies. The majority of Nigerians are living hand to mouth, with many unable to afford basic foodstuffs, medical care, and education. Against this backdrop, political office holders, who already enjoy obscene allowances, perks, and privileges, should not even contemplate a salary increase.
It is, therefore, not surprising that the Socio-Economic Rights and Accountability Project (SERAP) has stepped in to challenge this development. SERAP has filed a lawsuit against the RMAFC to halt the implementation of this salary increment. This resolute move represents a voice of reason and accountability at a time when public anger against political insensitivity is palpable. The group is rightly insisting that the law must serve as a bulwark against impunity.
According to a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare, the commission has been dragged before the Federal High Court in Abuja. Although a hearing date remains unconfirmed, the momentous step of seeking judicial redress reflects a determination to hold those in power accountable. SERAP has once again positioned itself as a guardian of public interest by challenging an elite-centric policy.
The case, registered as suit number FHC/ABJ/CS/1834/2025, specifically asks the court to determine “whether RMAFC’s proposed salary hike for the president, vice-president, governors and their deputies, and lawmakers in Nigeria is not unlawful, unconstitutional and inconsistent with the rule of law.” This formidable question goes to the very heart of democratic governance: can those entrusted with public resources decide their own pay rises without violating the constitution and moral order?
In its pleadings, SERAP argues that the proposed hike runs foul of both the 1999 Nigerian Constitution and the RMAFC Act. By seeking a judicial declaration that such a move is unlawful, unconstitutional, and inconsistent with the rule of law, the group has placed a spotlight on the tension between self-serving leadership and constitutionalism. To trivialise such an issue would be harum-scarum, for the constitution remains the supreme authority guiding governance.
We wholeheartedly commend SERAP for standing firm, while we roundly condemn RMAFC’s selfish proposal. Political office should never be an avenue for financial aggrandisement. Since our leaders often pontificate sacrifice to citizens, urging them to tighten their belts in the face of economic turbulence, the same leaders must embody sacrifice themselves. Anything short of this amounts to double standards and betrayal of trust.
The Nigerian economy is not buoyant enough to shoulder the additional cost of a salary increase for political leaders. Already, lawmakers and executives enjoy allowances that are grossly disproportionate to the national average income. These earnings are sufficient not only for their needs but also their unchecked greed. To even consider further increments under present circumstances is egregious, a slap in the face of ordinary workers whose minimum wage remains grossly insufficient.
Resources earmarked for such frivolities should instead be channelled towards alleviating the suffering of citizens and improving the nation’s productive capacity. According to United Nations statistics, about 62.9 per cent of Nigerians were living in multidimensional poverty in 2021, compared to 53.7 per cent in 2017. Similarly, nearly 30.9 per cent of the population lives below the international poverty line of US$2.15 per day. These figures paint a stark picture: Nigeria is a poor country by all measurable standards, and any extra naira diverted to elite pockets deepens this misery.
Besides, the timing of this proposal could not be more inappropriate. At a period when unemployment is soaring, inflation is crippling households, and insecurity continues to devastate communities, the RMAFC has chosen to pursue elite enrichment. It is widely known that Nigeria’s economy is in a parlous state, and public resources should be conserved and wisely invested. Political leaders must show prudence, not profligacy.
Another critical dimension is the national debt profile. According to the Debt Management Office, Nigeria’s total public debt as of March 2025 stood at a staggering N149.39 trillion. External debt obligations also remain heavy, with about US$43 billion outstanding by September 2024. In such a climate of debt-servicing and borrowing to fund budgets, it is irresponsible for political leaders to even table the idea of inflating their salaries further. Debt repayment, not self-reward, should occupy their minds.
This ignoble proposal is insensitive, unnecessary, and profoundly reckless. It should be discarded without further delay. Public office is a trust, not an entitlement to wealth accumulation. Nigerians deserve leaders who will share in their suffering, lead by example, and prioritise the common good over self-indulgence. Anything less represents betrayal of the social contract and undermines the fragile democracy we are striving to build.
Editorial
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