Dangote is correct; it's time to sell the refineries.

Aliko Dangote's assertion that selling the refineries might be the best course of action for Nigeria is a reflection of the long-standing challenges faced by the country's ailing oil sector. The inefficiency and underutilization of the state-managed refineries have led to a chronic fuel shortage and heavy reliance on imported petroleum products, despite being Africa's largest oil producer.

The history of these refineries is one of mismanagement and neglect. Built in the 1960s and 1970s, they have suffered from poor maintenance, corruption, and a lack of investment in modernization. The Port Harcourt and Kaduna refineries, which were meant to be the backbone of the country's fuel supply, have rarely operated at full capacity and frequently require shutdowns for repairs.

The proposed sale of these assets to private investors, such as Dangote, presents several potential benefits. Firstly, it could lead to much-needed investment in technology and infrastructure, which would increase efficiency and reduce operational costs. Secondly, private management often brings better corporate governance and professionalism, which could translate into more reliable and consistent production of petroleum products. Thirdly, it would likely result in a reduction in government expenditure on the refineries, which have been a drain on public funds for years due to recurring turnaround maintenance and subsidy payments.

Moreover, the sale would also create a more competitive environment within the oil and gas sector. The Dangote Refinery, which is set to be one of the largest single-train refineries in the world, is a prime example of what private investment can achieve in the industry. It is expected to significantly reduce the country's dependence on imported fuel and potentially turn Nigeria into a net exporter of refined petroleum products.

However, there are also valid concerns regarding the potential negative impact of privatization on the workforce and the local content policy. Workers may fear job losses and the erosion of their benefits under new ownership. Additionally, the government must ensure that the sale does not lead to the exploitation of resources or the transfer of wealth to foreign entities without substantial benefits to the local economy.

In conclusion, while the idea of selling the refineries to private investors like Dangote is not without merit, it is essential for the government to carefully consider the implications and ensure that the process is transparent and fair. The privatization should be structured to prioritize the country's long-term economic growth and the welfare of its citizens. The government must also commit to creating an enabling environment for the private sector to thrive and contribute significantly to the downstream petroleum industry.