By John Umeh
The Federal Government is considering selling Nigeria’s state-owned refineries as part of sweeping economic reforms designed to open up the oil and gas industry, attract private investment, and foster competition in the downstream sector.
Nigeria’s four refineries — located in Port Harcourt, Warri, and Kaduna — have a combined installed capacity of 445,000 barrels per day but have been largely dormant for decades. Despite repeated turnaround maintenance efforts costing billions of dollars, the facilities have failed to operate efficiently or meet domestic fuel demands.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, revealed the plan during an interview with Bloomberg TV on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC). She said that the government was open to exploring outright sales or partnership agreements if suitable technical and financial partners were found.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” Verheijen stated, referring to the possibility of divesting ownership of the refineries currently managed by the Nigerian National Petroleum Company Limited (NNPCL).
Verheijen explained that the removal of fuel subsidies has created a more transparent and competitive market environment, making it easier for investors to enter the downstream sector. She noted that the Tinubu administration is committed to restoring operational efficiency, transparency, and profitability to Nigeria’s petroleum industry.
“Now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she said. “The goal is to ensure that the petroleum sector runs on commercial principles that deliver value to Nigerians.”
The government’s renewed focus on refinery performance comes amid growing frustration over prolonged inactivity. For instance, the Port Harcourt refinery, which was shut down on May 24, 2025, for what was supposed to be a 30-day maintenance exercise, has remained idle for more than 80 days with little progress reported.
Meanwhile, NNPCL’s Group Chief Executive Officer, Bayo Ojulari, recently disclosed that the company is seeking technical equity partners to manage and operate the refineries to international standards. “We are looking ahead with optimism to ensure our refineries operate effectively,” Ojulari said in a post on X (formerly Twitter).
Verheijen further hinted that the government still views a potential Initial Public Offering (IPO) for NNPCL as a long-term objective once transparency and efficiency have been fully achieved.
“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.
If approved, the proposed sale or partnership would mark a significant shift in Nigeria’s decades-long struggle to revitalize its refinery sector — a move many industry experts believe could finally end the country’s dependence on imported fuel.
