By Ephraim Oseji

Chairman, CEO of DAS Energy Services Limited, Chief Sunny Onuesoke, has opposed the call by the Manufacturing Association of Nigeria (MAN) for the privatization of Nigeria’s refineries.

MAN recently suggested that the Port Harcourt, Warri, and Kaduna refineries are a drain on the country’s economy, advocating that the Federal Government should sell the facilities.

MAN’s Director-General, Segun Ajayi-Kadiri claimed that the refineries are consuming government resources with no tangible results, stating, “about $3 billion has been spent to revive the refineries, but all to no avail.”

Opposing the call for the privatisation of the refineries, Onuesoke, in a telephone interview with Saturday Vanguard, criticized the idea, arguing that such privatization has previously led to failures when national assets were sold off.

“I am against the privatization of the refineries because the national assets that were privatized in the past in Nigeria did not work. All the national assets that have been sold are not functioning,” he said. He cited Delta Steel Company (DSC), rolling mills in Jos and Oshogbo, and the Nigeria Electricity Power Authority (NEPA) as examples of failed privatizations.

“They privatized NEPA, and it’s not working. They privatized NITEL, and it died. If it weren’t for the introduction of GSM, we would be suffering from poor communication networks in this country,” he added.

He further explained that Nigeria is not mature enough for full privatization due to deep-rooted issues. “We are not ready for the privatization of our national assets because of insecurity, lack of infrastructure, and the government’s inability to regulate the private sector,” Onuesoke emphasized. “We need national assets with national commitment. What MAN is proposing is reckless. Nigeria is not mature enough to handle privatization because the infrastructure to regulate and control it is not in place. Electricity is virtually zero. Communication is zero. Security is zero.”

He also pointed out the absence of essential institutions needed for effective regulation. “There are no security structures, no reliable power supply, and no discipline or regulatory institutions to oversee the private sector properly,” he said.

Instead of total privatization, Onuesoke recommended a public-private partnership (PPP) approach. “They should not be talking about privatization but rather about Public Private Participation. I am against full privatization. I advocate for Public-Private Joint Ventures, similar to how Shell, Mobil, GESCO, and other companies operate,” he explained.

He criticized MAN’s call for privatization, asserting, “The Manufacturing Association of Nigeria lacks the legitimacy to call for the privatization of the refineries because they do not understand what is really happening in the oil sector.”