The Federal Government has signaled that it may sell Nigeria’s state-owned refineries as part of broader economic reforms designed to attract investment, enhance competition, and improve efficiency in the downstream oil industry.
Despite a combined installed capacity of 445,000 barrels per day, Nigeria’s four refineries in Port Harcourt, Warri, and Kaduna have remained largely non-functional for decades. This is despite multiple turnaround maintenance projects that have consumed billions of dollars with little to show for it.
Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, revealed the potential plan during an interview with Bloomberg TV anchor Joumanna Bercetche at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
“It’s one of the options you have to consider if you find the right technical partner with the right capital,” Verheijen said, referencing a possible sale or partnership arrangement for the refineries, which fall under the Nigerian National Petroleum Company Limited (NNPCL).
She noted that the facilities had long relied on government subsidies, but with those subsidies now removed, the opportunity exists for market-led reforms. “Now that we’ve removed the subsidies, we’ve removed market distortions,” she said, adding that the administration is committed to restoring efficiency, transparency, and full commercial operations within the sector.
The renewed focus on the refineries follows heightened public concern over their continued inactivity. The Port Harcourt refinery, for example, was shut down on May 24, 2025, for what was supposed to be a 30-day maintenance exercise but has remained idle for more than 80 days, with little visible progress under current NNPCL leadership.
NNPCL CEO Bayo Ojulari recently disclosed that the company is seeking technical equity partners capable of managing and operating the Port Harcourt, Warri, and Kaduna plants to bring them up to international standards. “We are looking ahead with optimism to ensure our refineries operate effectively,” he wrote on X.
Verheijen added that the government still views a future initial public offering (IPO) for NNPCL as a long-term objective. “What’s important to shareholders is having an NNPC that is more transparent, more efficient, and delivers,” she said.
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