The Nigerian Economic Summit Group (NESG) has called on the Federal Government to speed up the process for the privatisation of the country’s refineries.
The group gave the advice in its newly released economic assessment, “NESG 2025 Q3 GDP Alert” which comes on the heels of a decline in the refining sector’s growth to 5.84 per cent in Q3 2025 from 20.5 per cent in Q2 2025
The NESG said fast tracking the privatisation process will significantly boost domestic oil output and reduce Nigeria’s heavy petroleum import bills.
The federal government recently said it was considering the sale of government-owned refineries to attract private investors, improve efficiency, and enhance competition in the downstream sector currently dominated by the Dangote Refinery.
The NESG report pointed out the continued strengthening of Nigeria’s refining capacity and the positive impact of increased local production on the broader economy.
It noted that improved domestic refining remains one of the country’s most viable pathways to reducing import dependence and stabilising foreign exchange pressures.
“The robust growth in the oil refining sector signals improved local refining capacity. These gains are expected to translate into reduced petroleum import bills as the Dangote Refinery continues its operations,” NESG stated.
However, the Group stressed that Nigeria cannot achieve full self-sufficiency in the refining of petroleum products unless the government urgently completes planned reforms in the sector — most critically, the privatisation and commercialisation of the moribund state-owned refineries in Port Harcourt, Warri, and Kaduna.
“To move towards full self-sufficiency in domestic refining, the government should proceed with the planned privatisation of state-owned refineries to restore their functionality as soon as possible,” the NESG noted.
The Group further noted that the federal government’s reforms introduced in mid-2023 have “begun to translate into improved growth outcomes, but these gains remain vulnerable without deeper structural reforms.”
The organisation stated that, although the sustained growth is impressive, “it remains fragile and must be reinforced through reforms that address long-standing bottlenecks.”
The group also lauded the agricultural sector’s performance but noted that there is need for targeted efforts to “address the challenges confronting industry players”.
