An energy expert, Dr Joseph Obele, a lecturer at Ignatius Ajuru University of Education in the Department of Marketing and Petroleum Economics, has strongly disagreed with former President Olusegun Obasanjo over his recent assertion that Nigeria’s refineries will “never work again.”
Reacting to the comments, Dr Obele who is also a stakeholder in Nigeria’s petroleum sector, described the position as overly pessimistic and not reflective of current reform opportunities within the petroleum sector.
While acknowledging that past challenges; ranging from poor maintenance, corruption, and operational inefficiencies; have hindered refinery performance, but insisted that these are fixable structural issues rather than permanent limitations.
According to him, “While former President Obasanjo raised valid historical concerns, concluding that the refineries will never work again dismisses ongoing reforms, technological advancements, and the possibility of institutional correction.
”He further noted that some of the oldest refineries in the world are still functional today, citing the Digboi Refinery in India, established in 1901, which continues to operate.
He argued that age is not a limitation, but rather maintenance culture, technology upgrades, and management efficiency determine refinery performance.
Dr Obele referenced the evolving structure of the Nigerian National Petroleum Company Limited, noting that its commercialisation and ongoing search for competent technical partners present a new pathway for restoring efficiency and productivity in the refining sector.
He emphasized that Nigeria’s refineries can function optimally under competent private sector management, stressing that the issue is not the assets themselves but how they are managed.
The energy expert pointed out that the successful revival of Nigeria’s refineries will deliver significant national benefits, including: “direct employment within refinery operations and indirect opportunities across logistics, retail, and allied industries.
Reduction in import costs will stabilize fuel prices and ease inflationary pressure on goods and services”.
Increased industrial productivity and value-chain activities will boost GDP and national development, healthy competition, reduced fuel prices, foreign exchange savings, host community development as revived operations will stimulate economic activities and social investments in oil-producing areas”.
Dr Obele cautioned against narratives that may tactically encourage monopoly in Nigeria’s downstream petroleum sector, warning that over-reliance on a few private operators could weaken competition and expose the market to pricing risks.
He also warned that statements suggesting that refineries will never work again are not healthy for the investment climate, as they are capable of discouraging foreign investors currently in discussions with the Nigerian National Petroleum Company Limited regarding potential technical partnerships.Dr Obele further expressed concern over the leadership direction of the current Group Chief Executive Officer of NNPCL, Bayo Ojulari.
He alleged that the GCEO has not demonstrated sufficient commitment towards the revival and commencement of production at government-owned refineries.
According to Dr Obele, the continued emphasis on private refining success, without corresponding visible progress on public refinery rehabilitation, raises concerns about policy balance and market fairness.He noted that within over a year in office, there has been limited visible progress on refinery revival efforts, adding that the shutdown of facilities without clear and transparent timelines for restart has further deepened stakeholder concerns.
Dr Obele stated that such an approach could be perceived as indirectly favoring market concentration, which may undermine competition in the downstream sector.Consequently, Dr Obele joined other industry stakeholders in calling on the President of the Federal Republic of Nigeria, Bola Ahmed Tinubu, to sack the current GCEO of NNPCL, Bayo Ojulari, and critically review the leadership and direction of the corporation, with a view to ensuring alignment with the broader objectives of petroleum sector reforms.
He however emphasized that any leadership structure that does not actively drive refinery revival risks undermining the reform agenda of the Federal Government.Dr Obele concluded by reiterating that Nigeria’s energy future depends on a balanced, competitive, and transparent refining ecosystem, where both public and private investments are efficiently managed for national development.
