The Nigerian National Petroleum Company Limited (NNPCL) has disclosed that it is considering the potential sale of the country’s refineries as part of an ongoing strategic reassessment.
Speaking in an interview with Bloomberg during the 9th OPEC International Seminar in Vienna, Austria, NNPCL’s Group Chief Executive Officer, Bayo Ojulari, revealed that the company is undertaking a comprehensive review of its refinery operations, with a final decision expected by the end of the year.
Ojulari acknowledged the increasing complexity involved in revamping Nigeria’s state-owned refineries. Despite significant investments and technological upgrades made over the past few years, NNPCL has encountered challenges, especially with the aging infrastructure and obsolete systems in the refineries.
NNPCL currently manages four crude oil refineries located in Port Harcourt, Warri, and Kaduna. These facilities have long been plagued by inefficiency, underperformance, and maintenance setbacks. While the Port Harcourt refinery briefly resumed operations in November 2024, it was shut down again in May for maintenance. The Warri and Kaduna refineries are still under rehabilitation.
According to Ojulari, NNPCL is committed to exploring all viable options for improving refinery performance, including a possible shift in ownership structure.
NNPCL CEO Bayo Ojulari discusses refinery challenges and potential sale at the OPEC seminar in Vienna.
“We’ve made substantial investments, but we’re finding the process more complex than anticipated. Some technologies haven’t delivered as expected, especially with refineries that have been idle for extended periods,” Ojulari said.
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He emphasized that NNPCL’s current review could lead to a significant change in strategy. When asked if this might include selling the refineries, Ojulari confirmed the possibility.
“A sale is not off the table,” he stated. “All options remain open. The decision will ultimately depend on the outcome of our ongoing review.”
