Federal Government Considers Selling Refineries to Attract Investors, Boost Efficiency
The Federal Government is considering selling Nigeria’s four state-owned refineries as part of a broader plan to reform the petroleum sector, attract investment, and stimulate competition. This disclosure was made by Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, during an interview with Bloomberg TV on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on Tuesday.
Nigeria’s refineries — located in Port Harcourt, Warri, and Kaduna — have a combined capacity of 445,000 barrels per day (bpd). Despite this, they have remained largely inactive for years, with successive administrations spending billions of dollars on turnaround maintenance projects that have yielded little success.
Verheijen explained that the government is weighing several options for the refineries, including partial or full privatization. She emphasized that the move would depend on identifying “the right technical partner with the right capital” to manage and operate the facilities efficiently.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” she said. “Now that we’ve removed subsidies, we’ve also removed distortions in that market.”
The adviser added that the administration’s reforms under President Bola Tinubu are designed to restore market efficiency, ensure transparency, and reposition the energy sector to operate on purely commercial terms.
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The refineries, owned by the Nigerian National Petroleum Company Limited (NNPCL), have long been viewed as a burden on the government due to their persistent losses and inefficiencies. Although NNPCL recently announced plans to rehabilitate the Port Harcourt refinery, reports suggest that work has stalled, with no significant progress since it was shut down for a 30-day maintenance exercise on May 24, 2025.
In a recent update, NNPC Chief Executive Officer Bayo Ojulari said the company is seeking technical equity partners who can manage and operate the Port Harcourt, Warri, and Kaduna refineries at international standards. “We are looking ahead with optimism to ensure our refineries operate effectively,” Ojulari said in a post on X (formerly Twitter).
The potential sale of the refineries aligns with NNPCL’s long-term plan to become a more transparent, commercially driven company. Verheijen hinted that an initial public offering (IPO) for NNPC remains a key goal under the government’s broader reform agenda.
“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.
Public reaction to the proposed sale has been sharply divided. While some Nigerians view the move as a long-overdue step toward ending the government’s losses, others fear it could lead to the refineries being sold to political cronies or foreign interests.
Critics also question why previous governments, including those that once opposed privatization, are now considering it as a solution. Some commentators have pointed out that former Vice President Atiku Abubakar was heavily criticized for making similar proposals during past election campaigns.
On social media and public forums, Nigerians have expressed skepticism over whether the proceeds from the sale would be used transparently. Others argue that given the current state of the facilities, selling them might be the most practical decision to attract private investment and end the cycle of waste.
Observers note that the move would also position the Dangote Refinery — Africa’s largest — as a key player in Nigeria’s downstream sector, potentially transforming the country’s refining landscape.
If implemented, the sale would mark one of the boldest steps in Nigeria’s decades-long effort to reform its oil sector. The challenge, however, lies in ensuring transparency, accountability, and genuine competition in the process.