By Anifowoshe Oladipupo
In a major policy U-turn, the Nigerian National Petroleum Company (NNPC), Limited is considering selling its four state-owned refineries following years of costly but unproductive rehabilitation efforts.
Speaking at the 9th OPEC International Seminar in Vienna, NNPC Group Chief Executive Officer, Bayo Ojulari, revealed that a comprehensive internal review is underway to determine the future of the refineries in Port Harcourt, Warri, and Kaduna, with a final decision expected by late 2025.
Ojulari admitted that the overhaul process has become “increasingly complex and fraught with technical setbacks,” despite a $3 billion investment between 2021 and 2023.
The Port Harcourt refinery, which briefly resumed crude processing in late 2023, was shut down again in May 2025 for maintenance, highlighting persistent operational challenges in Nigeria’s aging refining infrastructure.
This rethink follows mounting public and parliamentary scrutiny over NNPC’s decades-long spending on refineries, estimated at over ₦11.35 trillion (about $25 billion), with little to show in terms of output.
The proposed sale would align with ongoing reforms in Nigeria’s oil sector, which now prioritize private-sector participation and efficiency.
Ojulari also addressed the broader energy landscape, noting that Nigeria’s oil production costs remain high at $20–$30 per barrel, largely due to security expenses.
However, he celebrated a recent milestone: the country now enjoys 100% pipeline availability; a direct result of increased investment in securing oil infrastructure.
Despite cost challenges, Ojulari expressed optimism that Nigeria could ramp up production to 1.9 million barrels per day by the end of 2025, a significant rise from current levels below OPEC quotas.
If implemented, the refinery divestment would mark a historic shift in Nigeria’s downstream oil strategy, opening the door to private ownership and raising key questions about the country’s energy independence and long-term economic resilience.
