The Nigerian National Petroleum Company Limited (NNPC) is weighing the possibility of offloading its state-run refineries, following growing skepticism over their potential to resume operations despite years of rehabilitation efforts and massive spending.
NNPC’s Group Chief Executive Officer, Bayo Ojulari, hinted at the potential sale during an interview at the OPEC International Seminar in Vienna. He admitted that efforts to revive the Port Harcourt, Warri, and Kaduna refineries have not delivered the expected results, largely due to the outdated nature of the infrastructure.
Ojulari’s remarks echoed recent comments by industrialist Aliko Dangote, who cast doubt on the future of the government-owned refineries. Dangote, while speaking at an event at his Lekki refinery, criticized the inefficiency of the facilities, which have reportedly consumed over $18 billion without meaningful output.
“We’re reviewing all strategies related to our refineries,” Ojulari said. “Nothing is off the table—including a potential sale. But we’ll wait for the outcome of our ongoing strategic review before making any decisions.”
Ojulari explained that despite significant investment and attempts to upgrade the technology, the aging refineries continue to face complex challenges. He noted that working with abandoned and outdated systems has proven far more difficult than anticipated.
The comments mark a stark departure from the optimism of Ojulari’s predecessor, Mele Kyari, who had promised a full return to operations in late 2024. However, reports have since confirmed that two of the refineries declared operational were later shut down again.
Aliko Dangote, whose private 650,000 barrels-per-day refinery now dedicates over half its output to petrol, also revisited his abandoned attempt to acquire the government’s refineries in 2007. He revealed that the deal was reversed by late President Umaru Musa Yar’Adua, following pressure from officials who argued the assets were undervalued.
Dangote compared efforts to overhaul the obsolete facilities to retrofitting a decades-old car with modern technology—an exercise he described as futile.
Former President Olusegun Obasanjo has also been vocal on the issue, stating that international oil firms like Shell refused to manage the refineries during his tenure due to concerns over their condition. He criticized the NNPC’s continued management of the plants, alleging corruption and poor oversight.
Calls for the sale of the refineries have intensified, particularly from stakeholders in the energy and manufacturing sectors. Some experts have suggested that the refineries should be sold as scrap, with the proceeds redirected to support modular refinery projects that can better meet the country’s needs.
Despite multiple rounds of funding—including over $1.4 billion for Port Harcourt, $897 million for Warri, and $586 million for Kaduna—the facilities remain idle. Records also show that nearly $400 million was spent on turnaround maintenance between 2013 and 2017, yet none of the refineries are currently functional.
