The Federal Government has announced that it may sell off the country’s refineries as part of its economic reform strategy aimed at attracting investors, boosting competition, and improving efficiency in the downstream oil sector.
Nigeria’s four state-owned refineries — located in Port Harcourt, Warri, and Kaduna — have a combined installed capacity of 445,000 barrels per day (bpd) but have remained largely inactive for decades, despite repeated turnaround maintenance efforts that have cost the government billions of dollars.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, revealed this in an interview with Bloomberg TV anchor Joumanna Bercetche on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on Tuesday.
The refineries, owned by the Nigerian National Petroleum Company Limited (NNPCL), could be sold if suitable technical partners with sufficient capital are identified. “It’s one of the options to consider if you find the right technical partner with the right capital,” Verheijen stated.
She explained that the plants had been sustained by subsidies, but with their removal, market distortions had been eliminated. Verheijen noted that the Tinubu administration’s reform agenda seeks to restore efficiency and transparency in the petroleum sector, ensuring it operates on commercial principles.
One of the refineries was shut down on 24 May 2025 for scheduled 30-day repairs but has remained idle for over 80 days without notable progress under the new NNPCL management.
Meanwhile, the NNPCL recently announced that it is seeking technical equity partners capable of managing and operating the Port Harcourt, Warri, and Kaduna refineries to international standards. “We are looking ahead with optimism to ensure our refineries operate effectively,” NNPCL Chief Executive Officer Bayo Ojulari said in a post on X last week.
Verheijen added that the government views a future initial public offering (IPO) for NNPCL as the ultimate 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 said.