The Nigerian government is weighing the sale of its four state‑owned refineries as part of an economic reform strategy aimed at attracting investors and increasing competition in the downstream oil sector. The facilities—located in Port Harcourt, Warri and Kaduna—have a combined installed capacity of 445,000 barrels per day, yet they have remained largely dormant for decades despite repeated maintenance projects.
According to Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, the sale is one of several options being considered to secure a technical partner with the necessary capital. He disclosed this during an interview with Bloomberg TV on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference. The refineries are owned by the Nigerian National Petroleum Company Limited (NNPCL), which is seeking technical equity partners to manage and operate the plants to international standards.
The government’s reform agenda seeks to restore market efficiency and transparency by ensuring the petroleum sector operates on purely commercial terms. The removal of subsidies has eliminated market distortions, and the focus now is on attracting investors to revamp the refineries. NNPC Chief Executive Officer Bayo Ojulari expressed optimism, saying the company is looking ahead to ensure the facilities operate effectively.
NNPCL has announced its intention to seek technical equity partners, and the government views a potential initial public offering of the company as a long‑term goal. While the refineries have historically relied on subsidies, the current commitment is to run the sector commercially. The prospective sale of the refineries represents a significant development for Nigeria’s oil industry, which has faced challenges in recent years. Stakeholders and investors will be closely watching the outcome of the refinery sale and the possible IPO as the government advances its reform agenda.
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