By Olakunle Oke
The Federal Government has hinted at plans to sell its publicly-owned refineries as part of a broader effort to attract investors, improve competition, and enhance efficiency in Nigeria’s downstream oil sector, which is currently dominated by the Dangote Refinery.
The disclosure was made by the Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, during an interview with Bloomberg TV anchor Joumanna Bercetche on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
Verheijen said that divesting from refineries owned by the Nigerian National Petroleum Company Limited (NNPCL) is one of several reform options being explored to reposition the energy sector for sustainable growth.
She stated, “It’s one of the options that you have to consider if you find the right technical partner with the right capital,” adding that the removal of the petrol subsidy has eliminated market distortions that previously sustained the state-owned plants.”
Nigeria’s four government-owned refineries, located in Port Harcourt, Warri, and Kaduna, possess a combined installed capacity of 445,000 barrels per day (bpd) but have remained largely inactive for decades despite repeated, costly turnaround maintenance projects.
According to Verheijen, President Tinubu’s reform agenda seeks to restore efficiency and transparency in the petroleum sector, ensuring it operates strictly on commercial terms.
Meanwhile, the NNPCL announced last week that it is already seeking technical equity partners capable of managing and operating the Port Harcourt, Warri, and Kaduna refineries to meet international standards.
Verheijen also confirmed that a long anticipated initial public offering (IPO) for NNPCL remains part of the government’s long-term plans, emphasizing, “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.”
