November 5, 2025
The Federal Government, in a move to attract investors, boost competition, and improve efficiency in the downstream oil sector, has indicated that it may sell off its publicly-owned refineries.
The downstream oil sector, is currently dominated by the Dangote Refinery.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed this on Tuesday during an interview with a television anchor, on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference, ADIPEC.
Verheijen said that letting go of the Nigerian National Petroleum Company Limited, NNPCL, owned refineries is one among the several reform options the government is exploring to reposition the energy sector.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital” “The plants have largely been sustained by subsidies, “but now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she said.
READ MORE; NNPCL Refutes Proposed Sale Of Nigeria’s Port Harcourt Refinery.
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 dormant for decades, despite repeated turnaround maintenance projects that have cost the government billions of dollars.
Verheijen, said, under President Tinubu, the government’s reform agenda aims at ensuring that the petroleum sector operates on purely commercial terms.
Last week, NNPC Chief Executive Officer Bayo Ojulari said in a post on X, that the corporation was seeking technical equity partners capable of managing and operating the Port Harcourt, Warri, and Kaduna refineries at international standards.
“We are looking ahead with optimism to ensure our refineries operate effectively.”
Verheijen, stated that, The government also sees a long-anticipated initial public offering for NNPC as “an end destination.” “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.”
READ MORE; Bayo Ojulari Takes Over From Mele Kyari As President Tinubu dissolves NNPCL Board.
Whoever eventually buys the plants will compete with the giant 650,000-barrel-a-day Dangote refinery, Aliko Dangote last month announced plans to double the plant’s current capacity.
The NNPCL had in June, officially ruled out the sale of the Port Harcourt Refining Company, reaffirming its commitment to completing high-grade rehabilitation and retention of the plant.
Port Harcourt refinery was shut down on May 24, 2025, for scheduled repairs of 30 days, but it’s now been over 80 days without any significant activity.
