FG Considers Selling Refineries To Boost Competition
The Nigerian Federal Government has signaled its potential intention to divest from the country’s government-controlled refineries within the framework of continuing economic restructuring efforts designed to draw in investments, enhance rivalry, and elevate operational performance in the downstream petroleum industry.
The nation’s quartet of refineries situated in Port Harcourt, Warri, and Kaduna possess a total installed refining capability of 445,000 barrels per day (bpd), yet they have stayed mostly non-operational for many years, even though numerous expensive rehabilitation and maintenance initiatives have consumed billions of dollars in taxpayer money.
Olu Verheijen, who serves as the Special Adviser on Energy to President Bola Tinubu, revealed this strategy in a conversation with Bloomberg TV presenter Joumanna Bercetche held during the periphery events of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” Verheijen said, referring to a potential sale or partnership deal for the refineries, which are owned by the Nigerian National Petroleum Company Limited (NNPCL).
She elaborated that these facilities have historically been propped up through state subsidies, though the elimination of such subsidies has presently opened a pathway for reforms guided by market forces. “Now that we’ve removed the subsidies, we’ve removed the distortions in that market,” Verheijen said, noting that Tinubu’s administration is focused on restoring efficiency and transparency to ensure that the petroleum sector operates on fully commercial terms.
The central government’s fresh focus on these refineries arises in the context of escalating worries regarding their prolonged dormancy. For example, the Port Harcourt refinery was closed on May 24, 2025, for planned maintenance lasting 30 days, but it has continued to sit unused for over 80 days, without any significant advancements documented under the existing NNPCL management.
In the preceding week, Bayo Ojulari, the Chief Executive Officer of NNPCL, stated that the organization is pursuing technical equity collaborators equipped to handle and run the Port Harcourt, Warri, and Kaduna refineries in accordance with global benchmarks. “We are looking ahead with optimism to ensure our refineries operate effectively,” Ojulari posted on X.
Verheijen further disclosed that authorities continue to regard a forthcoming initial public offering (IPO) for NNPCL as an enduring objective. “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.
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