FG considers selling refineries to boost competition
The Federal Government has hinted at the possibility of selling Nigeria’s state-owned refineries as part of broader economic reforms designed to attract investment, enhance competition, and improve efficiency in the downstream oil sector.
Nigeria’s four refineries located in Port Harcourt, Warri, and Kaduna — have a combined installed capacity of 445,000 barrels per day (bpd) but have remained mostly dormant for decades, despite repeated and costly turnaround maintenance efforts that have consumed billions of dollars in public funds.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, revealed the plan during an interview with Bloomberg TV anchor Joumanna Bercetche on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
“It’s one of the options to consider if the right technical partner with sufficient capital is found,” Verheijen said, referring to a potential sale or partnership arrangement for the refineries, which are owned by the Nigerian National Petroleum Company Limited (NNPCL).
Last week, NNPCL Chief Executive Officer Bayo Ojulari said the company was seeking technical equity partners capable of managing and operating the Port Harcourt, Warri, and Kaduna refineries to meet international standards. “We are looking ahead with optimism to ensure our refineries operate effectively,” Ojulari posted on X.
Verheijen also revealed that the government still views a future initial public offering (IPO) for NNPCL as a long-term goal. “What’s really important to the shareholders is that we have an NNPC that’s a lot more transparent, a lot more efficient, and delivers,” she added.
