Former Vice President Atiku Abubakar has publicly stated that the recent admission by the Nigerian National Petroleum Company Limited (NNPCL) regarding the $1.5 billion rehabilitation of the Port Harcourt Refinery validates his longstanding advocacy for the privatization of Nigeria’s state-owned refineries. In a statement shared via his social media handle, Atiku expressed his concerns regarding the inefficiency of the state-run refinery system and emphasized the financial mismanagement that led to the colossal expenditure without any tangible returns on investment. He believes this situation highlights the urgent need for restructuring the oil sector in Nigeria to enhance productivity through privatization.

The NNPCL Group Chief Executive Officer, Bayo Ojulari, revealed that the company’s refineries are suffering from monumental losses, prompting a significant halt in operations to mitigate any further financial degradation. Ojulari acknowledged the growing frustration among Nigerians, who expected systemic improvements following substantial government spending on refinery rehabilitation. This disappointment has placed immense pressure on the NNPCL, compelling it to reassess its operational strategies in a sector critically important to Nigeria's economy.

Atiku's remarks come at a time when Nigeria is grappling with various economic challenges, significantly influenced by the performance of its oil sector. The failure of the refinery trigger significant discussions in the political and economic realms, raising questions about the future direction of the country’s energy policy and the viability of continuing to invest in state-owned entities that have proven inefficient. This debate could potentially lead to significant shifts in the management and operational framework of the oil industry in Nigeria, as stakeholders seek more sustainable solutions to optimize productivity and profitability in the sector.