The Federal Government of Nigeria is considering the sale of its state-owned refineries, including those in Warri, Port Harcourt, and Kaduna, as part of a strategic review aimed at improving efficiency and competition in the oil sector.
NNPCL CEO Bayo Ojulari stated that “some of those technologies have not worked as we expected,” adding that “reviving old refineries that have been idle for some time is becoming a little bit more complicated.”
Ojulari emphasized that selling the refineries is among the options under review, saying, “All options are on the table … that decision will be based on the outcome of the reviews we’re doing now.” The move comes amid increasing calls from industry bodies for privatisation to fund smaller modular refineries and reduce Nigeria’s dependence on imported fuel.
Industry experts believe that opening up the refineries to private investment could boost competition in the downstream sector, attract foreign expertise, and improve overall production efficiency. “The government has already allowed independent marketers to buy petrol directly from private refineries, promoting market competition,” noted an industry insider.
However, concerns remain over valuation, potential job losses, and ensuring public interest is protected. Critics stress that without strong regulatory oversight, handing control to private or foreign entities could replicate past inefficiencies.
If approved, the sale could mark a major shift in Nigeria’s energy policy, easing the government’s financial burden and stimulating investment in the sector. Ojulari concluded, “We are carefully reviewing all possibilities to make a decision that benefits Nigerians and the energy sector.”
