Political Interference, Not Skill Gaps, Drives Nigeria’s Refinery Collapse

Sep, 27 2025

During the 4th PENGASSAN Energy and Labour Summit in Abuja, the head of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, made a clear statement: the collapse of the country’s state‑owned refineries has little to do with a shortage of skilled workers. Instead, it is political meddling, corruption and chronic mismanagement that are pulling the strings.

Why Politics Trumps Skill in Nigeria's Refineries

Osifo reminded the audience that Nigerian engineers and technicians have a solid track record. He pointed to the period when the COVID‑19 pandemic forced expatriate staff off offshore platforms; Nigerian crews stepped in and kept production flowing without a hitch. "That was proof that we have the know‑how," he said, stressing that local manpower can match global standards when given the right environment.

According to him, the real problem is the constant interference from politicians who dictate operational decisions, allocate resources arbitrarily and change policies on a whim. Such instability robs refinery managers of the tools, spare parts and consistent funding needed to run complex plants efficiently.

Corruption compounds the issue. Osifo cited numerous instances where contracts were awarded to unqualified firms, equipment was procured at inflated prices and funds earmarked for maintenance vanished into opaque accounts. He argued that these practices erode the operational capacity of the refineries faster than any technical shortfall could.

In addition to the political and corrupt elements, the president warned that erratic policy frameworks scare away investors. When tax regimes shift overnight or licensing requirements are applied inconsistently, foreign and local investors lose confidence and pull back capital that could be used for upgrades and expansion.

To illustrate the gap between potential and reality, Osifo shared a simple list of what he believes would revive the sector:

• Stable, transparent policies that protect long‑term investments.
• Direct access to modern tools and spare parts without bureaucratic delays.
• Zero‑tolerance approaches to corruption, with clear accountability mechanisms.
• Empowerment of local technical staff through continuous training and clear career pathways.

The summit’s broader theme—"Building a Resilient Oil and Gas Sector in Nigeria: Advancing HSE, ESG, Investment and Incremental Production"—mirrored Osifo’s call for a holistic overhaul. He argued that health, safety and environmental standards, along with robust ESG practices, can only be met when the political climate stops acting as a roadblock.

His message resonated with many participants who have watched refinery output slide from the 200,000‑barrel‑per‑day target to a fraction of that in recent years. While some pundits still blame a lack of technical expertise, Osifo’s insistence is that the workforce is ready; it is the *Nigeria refinery* landscape that needs a political reset.

As the three‑day summit continues, stakeholders are expected to draft concrete recommendations for the Ministry of Petroleum Resources. The hope is that these will translate into legislative reforms, budget allocations and a clear roadmap that aligns political will with the sector’s technical capacity.