FG Should Have Sold Refineries to Dangote, Says Economist Bismark Rewane; Advocates Airport Concessions Over Renovations
Foremost economist and CEO of Financial Derivatives Company (FDC), Mr. Bismark Rewane, has criticized the Federal Government’s handling of state-owned refineries, asserting that privatizing these assets, particularly selling them to Dangote Industries Limited, would have saved Nigeria billions in maintenance costs. Speaking at the 29th annual conference of the League of Airports and Aviation Correspondents (LAAC) in Lagos, Rewane underscored the economic benefits of Dangote’s refinery operations in reducing Nigeria’s dependence on imported refined crude oil.
Rewane warned against the government’s current plan to spend N712 billion on renovating the old terminal of Murtala Muhammed International Airport (MMIA) in Lagos. He described such expenditures as potentially wasteful, arguing that the funds could be better utilised through the concession of airports, allowing private sector efficiency rather than costly government-led renovations. The Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has outlined a comprehensive renovation plan for the MMIA terminal, which is over 45 years old and requires foundational repairs.
Highlighting the lessons learned from the costly turnaround maintenance of government-owned refineries, Rewane suggested that Nigeria should avoid a repeat scenario in its airport infrastructure. He believes airport concessions would encourage private investment and operational improvements, similar to how Dangote’s involvement in refineries has brought relief to the sector. According to him, such a strategy would ensure better resource allocation and reduce government financial burdens.
Rewane’s speech, themed “Financing Aviation in Nigeria: Risks, Opportunities and Prospects,” resonated with calls for reform in Nigeria’s aviation financing model. He emphasized the need for strategic partnerships with the private sector to modernize and sustain Nigeria’s aviation infrastructure without excessive public spending. This reflects a growing consensus that privatization and concessions could be key to unlocking efficiency and growth in Nigerian infrastructure sectors.
The economist’s views come amid broader discussions about Nigeria’s economic policies and infrastructure development strategies, particularly the balance between public investment and private sector participation. His remarks highlight the challenges facing government management of key assets and the potential benefits of leveraging private capital for national development.