The Nigerian National Petroleum Company Limited (NNPCL) is considering the potential sale of its three major refineries — Port Harcourt, Warri, and Kaduna — amid growing concerns over their performance and sustainability.
Group Chief Executive Officer of NNPCL, Bayo Ojulari, disclosed the development during an interview with Bloomberg on the sidelines of the 9th OPEC International Seminar in Vienna, Austria, on Thursday.
“We’re reviewing all our refinery strategies now. We hope before the end of the year, we’ll be able to conclude that review. Sale is not off the table,” Ojulari said.
He acknowledged that despite substantial investments in reviving the refineries, little has been achieved due to outdated infrastructure and failing technologies.
“Some of the technologies have not worked as expected. Refining abandoned and aged facilities has proven more complex than anticipated,” he explained.
Ojulari’s remarks follow similar sentiments expressed by Aliko Dangote, who said he doubted the refineries would ever function optimally again, despite the $18 billion reportedly spent on them. He compared the ongoing turnaround maintenance efforts to “modernizing a 40-year-old car” with obsolete bodywork.
The recent shutdowns of the Port Harcourt and Warri refineries — just months after they were declared operational — have sparked intensified calls for privatisation. Critics, including the Manufacturers Association of Nigeria, have labeled the facilities a financial drain, citing billions spent on rehabilitation with no meaningful output.
In 2021 alone, ₦100 billion was reportedly allocated for refinery maintenance, alongside a monthly spend of ₦8.33 billion, yet performance remains negligible.
Meanwhile, NNPCL has announced a roadmap to list on the Nigerian Exchange (NGX) by 2028, in line with reforms introduced by the Petroleum Industry Act (PIA).
“The PIA gives us a roadmap and stabilisation in the sector. We are preparing for transparency and accountability that comes with a public listing,” Ojulari said.
