- FG may sell Warri, Port Harcourt and Kaduna refineries to attract private investment.
- After subsidy removal, the refineries now face open competition in the oil market.
- Government wants a transparent and efficient NNPC as part of long-term reforms.
- The review of the refineries continues as Nigeria weighs full or partial refinery sale.
Nigeria’s oil refining sector may be heading for a major shake-up as the Federal Government revealed it is open to selling the Warri, Port Harcourt and Kaduna refineries to credible investors. The plan, according to the presidency, is to bring in competent technical partners with the financial strength needed to revive the facilities and boost competition in the downstream market.
Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, made the disclosure in an interview with Bloomberg TV during the ADIPEC Energy Conference in Abu Dhabi. She explained that selling the refineries is one of the options on the table as the government works toward a more efficient oil sector.
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“If you find the right technical partner with the right capital, it is an option you must consider,” Verheijen said, noting that the refineries had operated under government subsidies for years, leaving little room for competition or efficiency.
With the removal of fuel subsidies, she said the market has become more transparent and competitive, leaving no excuses for inefficiency. “Now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she added.
In October, the Nigerian National Petroleum Company (NNPC) Limited announced it had begun a full commercial and technical review of the three refineries. Earlier in July, NNPC’s Group Chief Executive Officer, Bayo Ojulari, admitted the process of revamping the refineries had become “a bit more complicated,” but assured stakeholders that the ongoing reassessment would determine the best approach.
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Verheijen also disclosed that the planned public listing of NNPC shares remains a long-term target, aimed at building a company that operates transparently, delivers returns to shareholders, and runs efficiently.
“What matters most is having an NNPC that is transparent, efficient, and delivers,” she emphasized.
