Abu Dhabi, UAE — The Federal Government is considering the option of selling the refineries owned by the Nigerian National Petroleum Company (NNPC) Limited, according to Olu Verheijen, Special Adviser to President Bola Tinubu on Energy.
Verheijen disclosed this on Tuesday in an interview with Bloomberg TV on the sidelines of the ongoing ADIPEC Energy Conference in Abu Dhabi, United Arab Emirates.
According to her, the government is exploring the possibility of bringing in private sector partners with strong technical capacity and financial strength to improve efficiency and increase competition in Nigeria’s refining sector.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” Verheijen said.
She explained that Nigeria’s government-owned refineries — located in Warri, Port Harcourt, and Kaduna — have for years relied heavily on subsidies to remain afloat. However, with the removal of petrol subsidy, she noted that the market conditions are changing, allowing for more transparency and private participation.
“Those plants have largely been sustained by subsidies. But now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she added.
In October, NNPC announced that it had begun a comprehensive technical and commercial review of the refineries, as part of ongoing efforts to determine the best approach for their rehabilitation or restructuring.
Earlier in July, Bayo Ojulari, the Group Chief Executive Officer (GCEO) of NNPC, said efforts to revamp the refineries have become increasingly complex. He indicated that the company is reassessing the entire process and expects to conclude the review by the end of the year.
Verheijen also said the Federal Government still sees a public listing of NNPC shares — through an Initial Public Offering (IPO) — as a long-term goal.
“What’s really important to the shareholders is that we have an NNPC that’s a lot more transparent, a lot more efficient and delivers,” she said.
On Tuesday, Ojulari also confirmed that steps are being taken to improve transparency across all NNPC operations as part of preparations for the future listing.
Nigeria currently struggles with domestic fuel production despite being Africa’s largest oil producer, leading to heavy reliance on imported petroleum products. The possible sale or partnership restructuring of state-owned refineries is seen by analysts as a strategic step toward achieving energy security and efficiency.
