NNPCL: We Are Considering Selling Refineries

The Nigerian National Petroleum Company Limited (NNPCL) has hinted at the possibility of selling off the country’s refineries.

In an interview with Bloomberg, the Group Chief Executive Officer of the NNPCL, Bayo Ojulari, said the company is currently reassessing the refineries’ strategies and could finalise the review by year-end.

The NNPC boss, who spoke to the news platform on the sidelines of the 9th OPEC international seminar in Vienna, Austria, admitted that it was becoming a ‘bit more’ complicated to revamp state-owned refineries.

ALSO READ: Late Ivan: My Mission Remains Proactive Representation, Senate Resolution Sets Powerful Precedent– Ned Nwoko Writes

Nigeria has four crude oil refineries, all managed by the NNPCL. They have long struggled with underperformance, inefficiency, and maintenance issues.

There have been increased calls over the years to hand these oil facilities located in Port Harcourt, Warri, and Kaduna to the private sector for efficient management and productivity.

In November 2024, the state oil refinery said the Port Harcourt refinery had officially commenced crude oil processing, but the refinery shut down in May for maintenance.

The Warri and Kaduna refineries are, however, still undergoing rehabilitation.

“So refineries, we made quite a lot of investment over the last several years and brought in a lot of technologies. We’ve been challenged,” Ojulari said.

“Some of those technologies have not worked as we expected so far. But also, as you know, when you’re refining a very old refinery that has been abandoned for some time, what we’re finding is that it’s becoming a little bit more complicated.”

According to him, NNPCL is now conducting a comprehensive review of its refinery rehabilitation strategy and that conclusions from the exercise could prompt a change in approach.

“We hope before the end of the year, we’ll be able to conclude that review. That review may lead to us doing things slightly differently,” he added.

When asked whether the review could result in selling the refineries, Ojulari said a sale remains a possibility.

“But what we’re saying is that sale is not out of the question. All the options are on the table, to be frank, but that decision will be based on the outcome of the reviews we’re doing now,” he said.