The Federal Government has indicated that it may consider selling Nigeria’s state-owned refineries as part of ongoing economic reform efforts aimed at attracting investment, enhancing competition, and improving operational 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 largely inactive for decades, despite repeated and costly turnaround maintenance projects running into billions of dollars.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, made this known during 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), may be privatized if the right technical and financial partners are identified.
“It’s one of the options we have to consider if we find the right technical partner with the right capital,” Verheijen said.
She noted that the plants had long been sustained through government subsidies, adding that the removal of subsidies under President Tinubu’s administration has eliminated distortions in the downstream market.
According to Verheijen, the government’s reform agenda seeks to restore market efficiency and transparency, ensuring that the petroleum industry operates strictly on commercial principles.
One of the refineries was shut down on May 24, 2025, for scheduled maintenance expected to last 30 days, but has remained idle for over 80 days without significant progress under the new Group Chief Executive Officer of NNPCL.
The update comes as NNPCL announced that it is seeking technical equity partners to manage and operate the Port Harcourt, Warri, and Kaduna refineries in line with international standards.
“We are looking ahead with optimism to ensure our refineries operate effectively,” said NNPCL Chief Executive Officer Bayo Ojulari in a post on X last week.
Verheijen also revealed that the government envisions a long-term plan for an initial public offering (IPO) of NNPCL, describing it as the “end destination” of the ongoing reforms.
“What’s really important to the shareholders is that we have an NNPC that’s more transparent, more efficient, and delivers,” she added.
