Opinion
The Battle For Nigeria’s Refineries
The recent outburst of
the Nigeria Labour Congress (NLC) over the reported plans by the Bureau of Public Enterprises (BPE) to privatise the nation’s refineries is quite understandable.
The NLC who spoke through its president, Abdulwaheed Omar, decried the move as unwarranted arguing that it is “scandalous that the same government who had always promised to use the gains from petroleum rice increase, which it has received over the years, to reactivate existing refineries and build additional ones can turn around to announce the privatization of the refineries.
The petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas workers (NUPENG) had reacted in similar manner when the planned sale of the refineries was made known few months ago by the Minister of Petroleum Resources, Diezani Allison-Madueke. She said the government would like to see major infrastructure facilities such as the refineries transferred from the hands of government to the private sector, adding, “government do not want to be in the business of running major infrastructure and we haven’t done a very good job at it over these years”.
Unsurprising, the minister’s pronouncement did not go down well with many people especially the oil workers’ unions which would rather want the refineries fixed and made to perform optimally under government ownership.
These labour unions and some other analysts have also posited that the planned privatization is an attempt to hand over the nation’s refineries to cronies of the Federal government. Others are worried that the “national assets” would be put into the hands of foreigners. They think it is not safe for government to hand over the refineries entirely into the hands of private investors considering the country’s dependence oil for existence. Some other citizens are concerned about the privatization process. They are afraid that if enough period is not given within which the assets are expected to be sold, it will not allow for global best practices and transparency.
Be that as it may, I will totally align with those that believe it is high time we got rid of the four moribund refineries. As admitted by the Petroleum Minister, these refineries, two in Port Harcourt, one each in Kaduna and Warri have performed sub-optimally for almost two decades as state run entities. Billions of naira have been pumped into their Turn Around Maintenance (TAM), yet the desired results could not be gotten due to inefficiency, corruption and age.
As a result, Nigeria, Africa’s largest oil producer and the world’s ninth largest producer of crude oil shamefully relies on fuel imports to meet more than 70 per cent of its needs. These date owned plants operate at a fraction of their capacity cord. According to Nigeria National Petroleum Corporation (NNPC), the country exchanges 60,000 barrels a day of crude product with Trafigura Beheer 3v and a similar amount with Societe Ivoriene de Raffinage’s (SIR) in Ivory Coast and refineries in other countries. It is interesting to note that while our refineries are almost dead, some of the foreign refineries which refine our crude oil like the SIR built in 1962 before the first refinery in Nigeria continue to function at more than 80 per cent of installed capacity. Reasons being that the government of Cote D’ Ivoire retains a minority stake in the plant while renowned international oil companies hold the controlling interest.
It has also been established that all over the world government has never been a good business man. Government has a poor and pathetic history of managing anything and vital sector of the economy such as the refinery will be better in the hands of the private sector. The aviation and telecommunication sectors quickly come to mind as typical examples of how privatization can make a dead industry come to live.
Over the years, Nigeria has witnessed regular pump price increase causing untold hardship due to scarcity of petroleum product. Currently, though there is no official increase in the pump prise, the unexplained scarcity of petrol has forced motorists to buy the product for up to N150.00 per liter.
Presently, kerosene used by many families for cooking is out of reach for the poor. Many have resorted to the use of firewood and charcoal for cooking. If privatization will make petroleum products available and more affordable, why don’t we opt for that?
So, I think instead of NLC and oil workers threatening fire and brimstone if the refineries are privatized, they should dialogue with government on how best to go about the privatization process in the interest of the nation. They should concern themselves with the process through which the buyers will emerge. This is a period to put sentiments and personal interests aside and seek ways to develop the economy of this country.
It is also advisable that the labour unions and other stakeholders are carried along if the privatization process must succeed. That is why one considers the recent federal government’s dialogue with the organized labour on the burning issue as a right step in the right direction.
Perhaps if government has been a bit more transparent in the privatization exercises and also used the proceeds from such ventures judiciously, there would not have been any protest against the planned refineries sales. Keeping the people in the dark on government dealings most often leads to disaster.
It is also my opinion that drastic measures are taken to check pipeline vandalism if the privatization will yield positive result. Most important, as plans are being made to hand over the refineries to private investors, government should set up a regulatory body which will set rules to be followed by the investors. Our leaders, particularly the president require no reminding that they are constitutionally mandated to pursue sound and beneficial economic policy options at all times.
Therefore, the planned privation of refineries should be done in favour of the citizenry instead of a few privileged individuals.
Calista Ezeaku
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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