Overhaul NMDPRA, Liquidate NNPC Refineries, Dan Kunle Tells FG.
Energy analyst Dan Kunle has called for a radical overhaul of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the liquidation of the Nigerian National Petroleum Corporation Company Limited’s (NNPC)’s refineries, citing their inefficiency and corruption. Speaking at an industry conference in Lagos, Kunle argued that the refineries—Port Harcourt, Warri, and Kaduna—are a financial burden, having remained non-functional despite billions spent in maintenance costs.
Kunle proposed that privatizing the refineries or repurposing them as storage facilities, while urging the NMDPRA to streamline regulations to attract investment. The NNPC has faced criticism over for delays in rehabilitating the refineries, with the Port Harcourt facility missing multiple deadlines despite a $1.5 billion rehabilitation contract. Kunle’s comments reflect public frustration with the sector’s inefficiencies, which fuel Nigeria’s reliance on imported fuel.
The NMDPRA, established under the Petroleum Industry Act (PIA), has struggled with overlapping mandates and accusations of favouritism, deterring investors. Kunle advocated for a leaner, transparent agency to oversee the midstream and downstream sectors, emphasizing the need for accountability.
The Federal Government has acknowledged the refineries’ challenges but defended ongoing rehabilitation efforts, claiming progress. However, stakeholders argue that without structural reforms, Nigeria’s dream of energy self-sufficiency remains elusive. The debate over liquidation versus rehabilitation has split opinions, with labour unions opposing privatization due to fears of job losses.
Kunle’s call has reignited discussions on energy policy reform, with analysts urging the government to act decisively. As Nigeria grapples with fuel scarcity and subsidy debates, the fate of the NNPC’s refineries and the NMDPRA’s credibility will shape the sector’s future, with far-reaching economic implications.
