Petroleum Minister explains why Nigerian govt wants 20% in private refineries

The Minister of State for Petroleum Resources, Timipre Sylva, has stated that the Federal Government’s decision to acquire a 20 per cent equity stake in all private refineries is to guarantee energy security and stability in the country.

Sylva disclosed this when he received an award from a group on Thursday in Abuja.

Ripples Nigeria had reported that the Federal Government recently announced plans to acquire a minimum of 20 per cent equity stake in Dangote Refinery and other private refineries to be established in the country.

“Acquiring stakes in Dangote Refinery and other private refineries was a strategic decision by the government to get involved in the running of these important assets and not allow them completely in the hands of private individuals.

“Particularly in the absence of strategic security reserves to deploy if the private individual decided, maybe for political reasons, not to supply fuel.

“If the refinery is left in the hands of individuals who support the opposition, they can cause fuel scarcity and trigger a nationwide crisis that can destabilise the country.

READ ALSO: “Petrol is consumed by elites in Nigeria, so people should not complain about hike” – Timipre Sylva

“Government should have stakes in the private refineries to protect the citizens’ interest and ensure national stability at all times,” he said

He further said that government should acquire even higher stakes than the proposed 20 per cent, as it was important to protect its people and ensure stability.

“Today, petroleum products have to do with energy security and national stability. If there is a fuel crisis, it can result in national instability in the society,” Sylva said.

By Mayowa Oladeji

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now