President Bola Ahmed Tinubu has assured Nigerians that the country’s state-owned refineries will return to productive operation, saying the Federal Government is carrying out a comprehensive restructuring aimed at making the facilities commercially viable rather than merely operational.
The President gave the assurance on Thursday while receiving the leadership of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) at the Presidential Villa in Abuja during a meeting that also focused on fuel subsidy reforms, Compressed Natural Gas (CNG) adoption, workers’ welfare and the future of Nigeria’s oil and gas sector.
During the meeting, Tinubu defended his administration’s economic reforms, acknowledged concerns about the rising cost of living and pledged to continue implementing policies aimed at strengthening the country’s energy infrastructure and public finances.
The NUPENG leadership, in turn, urged the President to address the growing casualisation of workers in the petroleum industry and accelerate the rehabilitation of critical oil infrastructure across the country.
Tinubu says refinery reform must deliver profit
One of the central issues raised during the meeting was the future of Nigeria’s refineries.
Tinubu insisted that bringing the refineries back online involves more than restarting production.
According to him, a refinery should be judged by its ability to operate efficiently and generate value rather than simply producing visible activity.
The President said the government is carrying out structural and economic reforms intended to ensure that the facilities become financially sustainable.
His comments suggest that the administration views profitability as an essential part of the ongoing rehabilitation process.
Nigeria’s government-owned refineries in Port Harcourt, Warri and Kaduna have experienced years of underperformance despite repeated rehabilitation efforts.
The administration has continued pursuing partnerships and technical interventions aimed at restoring their capacity.
Fuel subsidy savings defended
Tinubu also revisited one of the defining decisions of his presidency: the removal of petrol subsidies.
He recalled that, before taking office, oil workers had warned of possible industrial action over the policy.
Despite those concerns, he maintained that ending the subsidy was necessary for the country’s long-term financial stability.
According to the President, the savings generated by subsidy removal are now supporting infrastructure projects and helping governments at different levels meet financial obligations, including salary payments.
He said details of how those funds are being utilised would be published.
The subsidy removal announced shortly after Tinubu assumed office in 2023 triggered significant increases in fuel prices but also became one of the administration’s most consequential economic reforms.
Supporters argue it has reduced pressure on public finances, while critics say it has contributed to rising living costs for ordinary Nigerians.
President raises concern over CNG benefits
The President also expressed concern about how the benefits of the government’s Compressed Natural Gas programme are being distributed.
The administration has promoted CNG as a cheaper alternative to petrol and diesel for transportation, particularly after fuel subsidy removal.
However, Tinubu argued that many of the financial gains are not reaching commuters as quickly as intended.
Instead, he suggested that truck owners are retaining much of the economic benefit.
He appealed to transport operators and union leaders to encourage drivers to pass some of those savings on to passengers through lower transport costs.
The comments indicate that the government wants the CNG programme to produce broader relief for consumers rather than benefiting only vehicle owners.
NUPENG demands action on casualisation
While acknowledging some of the administration’s achievements, NUPENG used the meeting to raise concerns about employment practices within the petroleum industry.
Union President Comrade Salimon Akanni Oladiti described the growing casualisation of workers as a serious problem, particularly in the upstream segment of the oil sector.
He said both NUPENG and the Petroleum and Natural Gas Senior Staff Association of Nigeria had repeatedly engaged companies over the issue without achieving meaningful progress.
According to Oladiti, the widespread use of contract and casual labour in such a strategically important industry undermines workers’ welfare and job security.
He appealed to Tinubu to intervene and help end the practice.
The union leader also noted that NUPENG had sought to avoid industrial actions that could disrupt the economy despite its concerns.
Union praises highway rehabilitation
Alongside its criticism of labour practices, NUPENG commended the Federal Government for ongoing rehabilitation and dualisation of major federal highways.
Oladiti said improvements to road infrastructure are making journeys safer for petroleum tanker drivers and easing the movement of fuel across the country.
The union argued that better highways are an important part of strengthening Nigeria’s petroleum supply chain.
Safer roads can reduce transportation delays, improve distribution efficiency and lower some of the risks faced by tanker operators.
The acknowledgement reflects an area where the union says it has seen tangible progress.
Call to revive NPSC depots
NUPENG also urged the government to expand its rehabilitation efforts beyond refineries.
The union appealed for renewed attention to the Nigerian Pipelines and Storage Company (NPSC) depots located across the country.
According to Oladiti, restoring those depots would complement efforts to revive state-owned refineries by improving storage and distribution infrastructure.
He proposed that the facilities could be managed by private investors under an equity-based arrangement.
The suggestion reflects wider debates within Nigeria’s energy sector about the role of public-private partnerships in managing petroleum infrastructure.
Supporters of such arrangements argue that private-sector participation can improve efficiency, while critics often emphasise the need for strong oversight of strategic national assets.
Government highlights broader economic reset
Throughout the meeting, Tinubu described his administration’s reforms as part of a broader economic restructuring programme.
He said managing Nigeria’s economy requires long-term financial re-engineering rather than short-term fixes.
The President argued that difficult reforms are necessary to create stronger foundations for future growth.
He also acknowledged that governing in a democracy involves balancing competing demands and navigating complex challenges.
Using the analogy of childbirth, Tinubu suggested that temporary hardship can ultimately lead to lasting benefits if reforms succeed.
His remarks were aimed at reinforcing the government’s message that current economic sacrifices are intended to produce long-term national gains.
Oil sector remains central to reforms
The discussions between the Presidency and NUPENG underline the continuing importance of the oil and gas industry to Nigeria’s economy.
The sector remains a major source of government revenue, foreign exchange earnings and employment, making issues such as refinery rehabilitation, labour practices and fuel distribution politically and economically significant.
The meeting also highlighted areas of agreement and disagreement between the government and organised labour.
While both sides expressed support for improving petroleum infrastructure, concerns over worker casualisation remain unresolved.
Similarly, although the government views CNG expansion as a major reform initiative, questions remain about how quickly its benefits will be felt by ordinary Nigerians.
Attention turns to implementation
For the Tinubu administration, the next challenge will be turning policy promises into measurable outcomes.
The commitment to restoring refinery operations will ultimately be judged by whether the facilities return to sustained commercial production.
Likewise, the success of the CNG programme will depend not only on vehicle conversions but also on whether transport costs become more affordable for commuters.
For NUPENG, continued engagement with the government offers an opportunity to press for stronger worker protections while supporting reforms that improve industry infrastructure.
As Nigeria’s energy sector undergoes significant changes, Thursday’s meeting demonstrated that dialogue between government and labour remains central to shaping the future of one of the country’s most strategic industries.
Whether on refinery rehabilitation, employment practices or fuel distribution, the issues raised at the Presidential Villa are likely to remain at the forefront of national economic discussions in the months ahead.
