The Major Energy Marketers Association of Nigeria (MEMAN) says the concession of the Nigerian National Petroleum Company Ltd (NNPCL) refineries is the most effective way to enhance domestic refining capacity.
Its executive secretary, Clement Isong, in an interview with the News Agency of Nigeria (NAN), on Tuesday in Lagos, said that approach would also help to meet the country’s local fuel demand. He said the public-private partnership (PPP) model could be used to revitalise the refineries.
This approach, he noted, would attract private sector investment and improve operational efficiency. Isong also suggested encouraging local refineries to adopt a toll-refining model, where oil producers could refine their crude locally for a fee.
He said the practice had proven successful in other markets. To ensure a level playing field, the MEMAN boss advocated for full price deregulation in the downstream sector, to allow operators to recover costs and invest in infrastructure.
For refineries that cannot be privatised, Isong recommended handing them over to professional managers to improve efficiency and foster competition.
