Tinubu promises to revive Nigerian refineries, warns smoke alone is not success
By Aboki Forex —
President Bola Tinubu has assured Nigerians that the country's refineries will be revived and repositioned to become commercially viable, insisting that simply getting the plants to operate is not enough. He made the commitment on Thursday when he received the newly elected national executive of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) at the State House in Abuja.
The President said the Federal Government would carry out detailed research and technical assessments of the refineries before implementing lasting solutions.
Refineries must be financially sustainable
According to a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, Tinubu said the assessments will examine the structural, operational, financial and managerial problems that have kept the facilities from delivering their full potential.
“The refineries that you mentioned are going to come back to work,” Tinubu said, stressing that the government was pursuing a broader structural reset of the refinery business.
Tinubu warned against measuring refinery performance simply by whether a plant is producing smoke or showing signs of activity. He argued that a refinery should be judged by its ability to operate efficiently, generate value and remain financially sustainable.
The President also said he had inherited the assets and liabilities of previous administrations and accepted responsibility for addressing the problems surrounding the country's refineries.
NUPENG backs subsidy removal, praises CNG push
Beyond refining, Tinubu promised NUPENG greater involvement in the implementation of the Presidential Initiative on Compressed Natural Gas (CNG). He urged the union to ensure that the programme delivers tangible benefits to ordinary Nigerians, particularly commuters seeking cheaper transportation alternatives.
The President also addressed local government autonomy, saying constitutional questions surrounding its implementation were being reviewed and could be fine-tuned.
NUPENG President Comrade Salimon Akanni Oladiti commended Tinubu for ending the petrol subsidy regime in 2023, describing the decision as courageous and necessary to stop what he called decades of financial drain. He said the savings were being redirected towards infrastructure projects, including the Lagos-Calabar Coastal Highway and Sokoto-Badagry Superhighway.
During the meeting, NUPENG decorated Tinubu as its Grand Patron. The President also paid tribute to late former NUPENG leader Frank Kokori, recalling their shared involvement in Nigeria's pro-democracy struggle.
Downstream sector enters a new phase
His comments come as Nigeria's downstream oil sector continues to undergo significant changes following the removal of petrol subsidies and the expansion of private-sector refining capacity.
Nigerian energy company Aradel Holdings Plc is targeting 2027 to begin producing petrol at its modular refinery in Rivers State, potentially adding another domestic source of fuel. Temitayo Ogunbanjo, who oversees Aradel's refining business, disclosed the plan on the sidelines of a conference in Abuja, saying the removal of petrol subsidies and deregulation had created a clearer commercial path for local refiners to produce petrol.
With the government promising to overhaul state-owned refineries while private investors expand refining capacity, Nigeria's petrol market could be entering a new phase in which efficiency, profitability and domestic supply become the key measures of success.