An energy expert and CEO of Dairy Hills, Kelvin Emmanuel, has suggested that the Nigerian government withdraw from refinery operations.
He advocates for a transition to private sector management, emphasizing the potential for increased efficiency and improved performance in the oil and gas sector under private control.
In an ARISE NEWS interview on Friday, Emmanuel emphasized that the Nigerian government should sell off its refining assets and concentrate on enhancing upstream oil production.
He argued that private sector-led refinery operations would drive efficiency, while the government could focus on maximizing crude oil exploration and production to strengthen the sector’s overall performance.
““It’s important for the government to hands off refining.
“Sell the business and allow the private sector to run refinery operations in Nigeria.”
Emmanuel further stated that the Nigerian government’s target of producing 2 million barrels of crude oil per day by 2025 is overly optimistic.
He suggested that a more realistic projection would be between 1.7 and 1.75 million barrels per day, citing challenges within the sector that could hinder achieving the higher target.
“The effort should be on upstream, to focus on raising the output of crude oil so that you can ensure that you comply with sections 109 and the gazette issued by the regulator, NUPRC,” he noted.
Emmanuel argued that prioritizing the supply of crude oil to Nigeria’s domestic refineries, with a combined installed capacity of 864,500 barrels per day, should take precedence over issuing export permits.
He emphasized that leveraging existing refining capacity would enable Nigeria to meet local demand and transition from being a net importer to an exporter of petroleum products, boosting the economy and enhancing energy security.
