In a significant shift that could reshape Nigeria’s oil refining sector, the Nigerian National Petroleum Company Limited (NNPC Ltd) is weighing the possibility of selling off some of its state-owned refineries, according to Group CEO Bayo Ojulari.
Speaking Thursday during an interview with Bloomberg at the 9th OPEC International Seminar, Ojulari confirmed that a strategic review is currently underway to assess the future of the company’s ailing refineries. The outcome of that review, he said, could include potential divestments.
“We’re reviewing all our refinery strategies now. We hope before the end of the year, we’ll be able to conclude that review,” Ojulari said.
“That review may lead to us doing things slightly differently.”
When pressed on whether a sale was on the table, he responded candidly:
“Sale is not out of the question. All options are on the table.”
The remarks come as NNPC continues its uphill battle to rehabilitate its aging refining infrastructure, particularly facilities in Port Harcourt, Warri, and Kaduna.
Though the Port Harcourt refinery briefly restarted operations in late 2023, it was shut down again this May for maintenance.
Ojulari blamed the persistent setbacks on outdated machinery and underperforming technologies brought in during recent upgrade efforts.
“We’ve made quite a lot of investment over the last several years,” he said.
“Some of those technologies have not worked as we expected. Refining an old refinery that’s been dormant for years has proven more complex than anticipated.”
The NNPC boss also highlighted the financial pressures weighing down Nigeria’s crude oil production.
He pegged the country’s current operating cost at between $25 and $30 per barrel—among the highest globally.
READ ALSO: NNPC Ltd Donates 35 CNG Buses to Boost Cleaner Transport in Nigeria
A significant portion of these expenses, Ojulari revealed, goes into securing pipeline infrastructure to combat vandalism and theft.
“Today we have 100 per cent pipeline availability. That came out of significant investment in security,” he noted.
“With time and stability, we believe that cost will come down.”
Despite the hurdles, Ojulari maintained an optimistic outlook, projecting that Nigeria’s crude oil production could reach 1.9 million barrels per day before year’s end.
NNPC’s potential decision to offload refineries marks a pivotal moment in the country’s decades-long struggle to reduce reliance on imported petroleum products.
Past efforts to revive the state-run facilities have often faltered due to corruption, neglect, and lack of technical expertise.
Whether this review leads to outright sales, public-private partnerships, or complete overhauls remains to be seen.
But for now, the door to privatization is open.