Tinubu Directs Nigeria's Refineries to Operate Profitably

Nigeria's refineries, long a symbol of the nation's paradox of oil wealth and import dependence, are set for a "comprehensive reset" under President Bola Ahmed Tinubu's directive. Unlike previous "revival" efforts that consumed billions of dollars without sustained results, Tinubu insists the refineries must not only restart but also become profitable ventures.

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The federal government was undertaking a comprehensive reset, restructuring and technical assessment of the refineries to address the structural, operational, financial and managerial problems that have repeatedly undermined their performance.

The President emphasized that a refinery's success is measured by its commercial value, not just its operational status. This means reliably processing crude, producing refined products at competitive costs, and generating value for Nigerians. This audacious goal confronts the institutional and commercial challenges that have historically plagued the sector.

Tinubu's administration has already removed the petrol subsidy, a move hailed by the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) as courageous. The union's president, Salimon Akanni Oladiti, noted it halted decades of financial drain. With subsidy removal, the government faces an obligation to create a more efficient energy economy, making domestic refining crucial.

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the decision as courageous and said it had helped halt what he characterised as decades of financial drain on national resources.

The focus on profitability aims to reduce Nigeria's costly reliance on imported refined products. This dependence has historically exposed the economy to volatile international prices, foreign exchange pressures, and supply disruptions. The success of this new approach hinges on transforming the refineries into commercially viable entities that serve the nation's energy needs.

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A refinery is not successful because its machines turn on. It is successful when it reliably processes crude, produces refined products at commercially viable costs, competes effectively, reduces dependence on imports and generates value for its owners, the Nigerian people.