The Federal Government is weighing the option of selling off Nigeria’s state-owned refineries as part of efforts to attract investors, enhance competition, and restore efficiency to the downstream oil sector currently overshadowed by the dominance of the privately-owned Dangote Refinery.
Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, disclosed the plan during an interview with Bloomberg TV at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
She explained that privatising the refineries managed by the Nigerian National Petroleum Company Limited (NNPCL) is one of several reforms being considered to reposition the country’s energy industry for long-term sustainability.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” she said, adding that subsidy removal has now cleared the market of distortions that previously kept the refineries afloat.
For years, Nigeria’s four state-owned refineries — in Port Harcourt, Warri, and Kaduna — have operated far below capacity, despite having a combined potential of 445,000 barrels per day. Multiple attempts at turnaround maintenance have gulped billions of dollars with little to show for it.
NNPC Seeks Private Technical Partners
In a related development, the NNPCL has begun the search for technical equity partners to manage and operate the refineries to 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 hinted that an initial public offering (IPO) of NNPCL remains on the horizon, describing it as “an end destination” of the ongoing reforms. The goal, she noted, is to make the state oil company more transparent, efficient, and commercially viable.
Economic Implications for Ordinary Nigerians
If the refineries are sold or revitalised under private management, Nigerians could feel the impact directly at the pump. Improved domestic refining capacity is expected to ease the country’s reliance on imported fuel, which currently makes local prices vulnerable to foreign exchange fluctuations.
However, with Dangote Refinery already producing more gasoline and diesel than the local market consumes, competition could go either way, either stabilising fuel prices through market supply or consolidating power in the hands of a few major players.
For everyday Nigerians, that balance will determine whether transportation costs, food prices, and general living expenses rise or fall.
Lingering Doubts After Years of False Starts
Despite renewed optimism, scepticism remains. In June, NNPCL dismissed rumours of selling the Port Harcourt Refining Company, insisting on completing rehabilitation works. But since the plant was shut down for 30 days of scheduled repairs in May 2025, activity has been minimal for over 80 days, fuelling public doubts about the government’s true intentions.
For now, the prospect of a sale has stirred cautious hope among Nigerians, who have long borne the brunt of inefficiencies in the country’s fuel supply system. Whether the move will finally end decades of waste and high energy costs remains to be seen.
