MAN DG says private sector success proves government should exit oil refining business

The Director-General of the Manufacturers’ Association of Nigeria (MAN), Segun Ajayi-Kadir, has called on the federal government to fully privatize the country’s four national refineries, insisting that the private sector has shown greater capacity to drive efficiency and energy security.

Speaking in an interview with Channels Television, Ajayi-Kadir pointed to the performance of the Dangote Refinery as proof that government has “no business doing business” in fuel refining.

According to him, the removal of fuel subsidies, while initially harsh on manufacturers, has paved the way for broader reforms in the energy sector. He stressed that private investment, like that of Dangote, has helped reduce logistics costs, cut out profiteering middlemen, and increase the availability of petroleum products.

“Before now, Nigeria was exporting crude and importing refined fuel—a tragic mismatch for a country rich in oil. But with local refining now gaining traction, especially through private efforts, we’re seeing prices come down and supply chains improve,” he said.

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Ajayi-Kadir dismissed concerns about monopoly, noting that the real issue lies in the inefficiency of other players, not the dominance of one. “We should focus on performance and the value delivered to consumers,” he said.

He argued that energy costs account for over 40% of manufacturing expenses, and any improvement in supply—particularly through local production of diesel and compressed natural gas—would lower production costs and revive small and medium businesses.

He also urged the government to tackle insecurity, which he says has forced 60% of manufacturers in the North East to shut down, and called for reforms in the electricity distribution sector to guarantee consistent power for industrial growth.

“The government should incentivize serious investors and step back from operating businesses. The cost of maintaining inefficient state-owned refineries is unfair to the Nigerian people,” he added.