The Manufacturers Association of Nigeria has urged the full privatisation of all government-owned refineries, arguing they cannot be restored to functionality under the current system. The association commended a new 15 per cent import tariff on petrol and diesel for supporting local industries.
On November 5, 2025, Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria (MAN), issued a statement calling for the complete privatisation of all government-owned refineries. He stated that it is evident the country may never succeed in restoring them to functionality under the current dispensation, adding, “We cannot restore them to functionality under this current dispensation.” Ajayi-Kadir argued that selling off the refineries would halt the commitment of scarce financial resources to an irredeemable venture.
MAN praised the recent approval of a 15 per cent import tariff on petrol and diesel, noting it aligns with the Nigeria First agenda and the association's advocacy for local content development and patronage of Made-in-Nigeria goods. This tariff reassures domestic manufacturers and exemplifies commitment to energy sufficiency, security, and improved well-being for Nigerians. It promotes local value addition, strengthens domestic refining capacity, conserves foreign exchange (FX), and advances long-term industrialisation objectives.
The DG highlighted that the tariff ensures the Naira-for-crude arrangement will provide reliable crude supply to local refineries, reducing pressure on scarce FX. He said, “It will also attract more investors, including holders of the 30 refinery licences, to commit resources in the sector. There is no better path to fixing Nigeria’s economy than protecting local industries, encouraging local patronage, fostering value addition, and promoting industrial development anchored on local content.”
Despite Nigeria's vast oil resources, the country spends billions in FX on importing refined petroleum. The tariff is expected to improve Naira stability, foster a favourable investment environment, accelerate refinery operational readiness, reduce disruptions, and stabilise energy supply to industries. It will encourage local refining utilisation, backward integration, stable fuel supply, employment, technical expertise, and industrial linkages.
Ajayi-Kadir called for transparent implementation, monitoring by regulators like PPPRA, NMDPRA, and FCCPC to prevent excessive mark-ups or anti-competitive behaviour. He urged initial support for local refiners to avoid supply shocks, especially with the festive period approaching, and reinvestment of duty proceeds into energy infrastructure. Additional recommendations include incentives for small and medium manufacturers reliant on diesel generators, attracting investment in more refineries, and fostering stakeholder engagement for market stability. MAN reaffirmed its support for the government's Nigeria First policy on local content and industrialisation.