The Federal Government has hinted that it may sell Nigeria’s publicly-owned refineries as part of efforts to attract private investment, stimulate competition, and improve efficiency in the country’s downstream oil sector — now dominated by the Dangote Refinery.
The disclosure came from Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, during an interview with Bloomberg TV anchor Joumanna Bercetche on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on Tuesday.
Verheijen said the potential divestment of the Nigerian National Petroleum Company Limited (NNPCL) refineries was one of several reform options being considered under the administration’s broader energy sector overhaul.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” she said.
She explained that the refineries — long sustained by subsidies — must now operate in a deregulated environment.
“Now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she added.
Nigeria’s four state-owned refineries — in Port Harcourt, Warri, and Kaduna — have a combined installed capacity of 445,000 barrels per day (bpd) but have remained largely idle for decades despite multiple costly turnaround maintenance efforts.
Verheijen said President Tinubu’s reform agenda aims to restore efficiency, transparency, and market-based operations in the petroleum sector, ensuring it runs on purely commercial principles.
NNPC Seeks Technical Partners
The NNPCL recently confirmed that it is 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,” NNPC Chief Executive Officer Bayo Ojulari said in a post on X.
Verheijen also noted that the government’s long-term plan includes an initial public offering (IPO) for NNPC.
“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 said.
Competition from Dangote Refinery
Any potential buyers of the refineries will face stiff competition from the 650,000-bpd Dangote Refinery, which already produces more gasoline and diesel than Nigeria can locally consume. The company recently announced plans to more than double its capacity, reinforcing its dominance in Africa’s refining landscape.
In June, however, the NNPCL had ruled out the sale of the Port Harcourt Refining Company, pledging to complete ongoing rehabilitation. The plant was shut down on May 24, 2025, for scheduled 30-day repairs, but activity has reportedly stalled for over 80 days under the corporation’s new leadership.
The proposed refinery sales — if implemented — would mark one of Nigeria’s most significant energy reforms in decades, potentially ending years of state inefficiency while opening the sector to private innovation and competition.