FG to consider selling state-owned refineries to boost revenue, improve efficiency

Thursday, November 6, 2025 - The Federal Government has indicated that it may sell off Nigeria’s state-owned refineries as part of ongoing economic reforms aimed at attracting investment, boosting competition, and improving efficiency in the downstream oil sector.

Nigeria’s four refineries located in Port Harcourt, Warri, and Kaduna have a combined installed capacity of 445,000 barrels per day (bpd) but have remained largely inactive for decades, despite multiple costly turnaround maintenance projects that have drained billions of dollars from public funds.

Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed the plan during an interview with Bloomberg TV anchor Joumanna Bercetche on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).

“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” Verheijen said, referring to a potential sale or partnership deal for the refineries, which are owned by the Nigerian National Petroleum Company Limited (NNPCL).

She explained that the plants have long been sustained by government subsidies, but the removal of those subsidies has now created an opportunity for market-driven reform. “Now that we’ve removed the subsidies, we’ve removed the distortions in that market,” Verheijen said, noting that Tinubu’s administration is focused on restoring efficiency and transparency to ensure that the petroleum sector operates on fully commercial terms.

The federal government’s renewed attention to the refineries comes amid growing concerns over inactivity. The Port Harcourt refinery, for instance, was shut down on May 24, 2025, for a scheduled 30-day maintenance but has remained idle for more than 80 days, with no major progress reported under the current NNPCL leadership.

Last week, NNPCL Chief Executive Officer Bayo Ojulari said the company was seeking technical equity partners capable of managing and operating the Port Harcourt, Warri, and Kaduna refineries to meet international standards. “We are looking ahead with optimism to ensure our refineries operate effectively,” Ojulari posted on X.

Verheijen also revealed that the government still views a future initial public offering (IPO) for NNPCL as a long-term goal. “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 added.