The Nigerian National Petroleum Company (NNPC) Limited is exploring the sale of its state-owned refineries in Port Harcourt, Warri, and Kaduna following years of costly rehabilitation efforts that have failed to restore full operations.
The announcement, made by NNPC’s Group Chief Executive Officer, Bayo Ojulari, during a Bloomberg interview at the 9th OPEC International Seminar in Vienna, has sparked debates about the future of Nigeria’s refining sector.
The four refineries, with a combined capacity of 445,000 barrels per day (bpd), have been plagued by operational challenges and prolonged neglect. Despite spending approximately $3 billion on repairs, including $1.5 billion for the Port Harcourt facility alone, the refineries remain largely non-functional.
Ojulari noted that a strategic review, set to conclude by the end of 2025, will determine whether NNPC will divest the assets or pursue alternative strategies. “All options are on the table,” he said, citing complex technical setbacks.
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In Rivers State, home to the two Port Harcourt refineries, the news has stirred mixed reactions. The facilities, critical to the state’s economy, have long been a source of jobs and local commerce. However, their frequent shutdowns, including a recent halt in May 2025 for maintenance after briefly resuming operations, have frustrated stakeholders.
Local business owner Ebiere Thompson in Port Harcourt remarked, “These refineries could transform our economy if they worked, but years of repairs haven’t delivered. Maybe new owners can do better.” The state’s leaders are calling for transparency in any potential sale to ensure benefits for the region.
The National Assembly has criticized NNPC’s spending, with some lawmakers alleging mismanagement of over $11 trillion in refinery funds over a decade. Meanwhile, industry experts, including Aliko Dangote, have questioned the viability of the aging facilities, comparing their revival to modernizing a 40-year-old car.
Dangote’s 650,000 bpd refinery in Lekki highlights the private sector’s growing role in Nigeria’s refining landscape.
