The Nigerian Financial Summit Group (NESG) has known as on the Federal Authorities to fast-track the privatisation of state-owned refineries, stressing that doing so would considerably enhance home oil output and scale back Nigeria’s heavy petroleum import payments.
The advice is contained within the organisation’s newly launched financial evaluation, “NESG 2025 Q3 GDP Alert.”
The advisory comes in opposition to the backdrop of a notable slowdown within the refining sector’s progress, which dropped to five.84% in Q3 2025, a pointy decline from the 20.5% progress recorded in Q2 2025, in accordance with the most recent GDP knowledge.
NESG’s name additionally follows latest stories indicating that the Federal Authorities is contemplating the sale of its publicly owned refineries.
The transfer, in accordance with the federal authorities, goals to draw personal traders, enhance effectivity, and improve competitors within the downstream sector at present dominated by the Dangote Refinery.
NESG lauds Nigeria’s home refining capability
Regardless of the challenges, the NESG report highlights the continued strengthening of Nigeria’s refining capability and the optimistic influence of elevated native manufacturing on the broader financial system.
It notes that improved home refining stays one of many nation’s most viable pathways to lowering import dependence and stabilising overseas alternate pressures.
“The strong progress within the oil refining sector indicators improved native refining capability. These beneficial properties are anticipated to translate into diminished petroleum import payments because the Dangote Refinery continues its operations,” NESG said.
Nevertheless, the Group careworn that Nigeria can’t obtain full self-sufficiency within the refining of petroleum merchandise until the federal government urgently completes deliberate reforms within the sector — most critically, the privatisation and commercialisation of the moribund state-owned refineries in Port Harcourt, Warri, and Kaduna.
“To maneuver in direction of full self-sufficiency in home refining, the federal government ought to proceed with the deliberate privatisation of state-owned refineries to revive their performance as quickly as doable,” the NESG famous.
Extra insights
Moreover, the suppose tank famous that the federal authorities’s reforms launched in mid-2023 have “begun to translate into improved progress outcomes, however these beneficial properties stay weak with out deeper structural reforms.”
The organisation said that, though the sustained progress is spectacular, “it stays fragile and have to be bolstered by reforms that tackle long-standing bottlenecks.”
The group additionally lauded the agricultural sector’s efficiency however famous that there’s want for focused efforts to “tackle the challenges confronting business gamers”.
What it’s best to know
In November, NNPCL mentioned that it’s already looking for technical fairness companions able to managing and working the Port Harcourt, Warri, and Kaduna refineries at worldwide requirements.
Earlier in June, the NNPCL formally dominated out the sale of the Port Harcourt Refining Firm, reaffirming its dedication to finishing high-grade rehabilitation and retention of the plant.
The refinery was shut down on Could 24, 2025, for scheduled repairs of 30 days, nevertheless it’s now been over 80 days with none important exercise or dedication below the administration of the brand new GCEO of NNPCL.
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