The chief executive of the Nigerian National Petroleum Company (NNPC) Limited, Mr Bashir Bayo Ojulari, has hinted at the possibility of selling off the country’s refineries.
In an interview with Bloomberg on Thursday, Mr Ojulari said the NNPC was currently reassessing the refineries’ strategies and could finalise the review by year-end.
The NNPC boss spoke to the news platform on the sidelines of the 9th OPEC international seminar in Vienna, Austria, admitting that it was becoming a ‘bit more’ complicated to revamp state-owned refineries.
Nigeria has four crude oil refineries, all managed by the NNPC Limited. These oil facilities have long struggled with underperformance, inefficiency, and maintenance issues.
There have been increased calls over the years to hand these refineries located in Port Harcourt, Warri, and Kaduna to the private sector for efficient management and productivity.
Recall that in November 2024, the state oil refinery said the Port Harcourt refinery had officially commenced crude oil processing, but the refinery shut down in May for maintenance.
The Warri and Kaduna refineries are, however, still undergoing rehabilitation.
“So, refineries, we made quite a lot of investment over the last several years and brought in a lot of technologies. We’ve been challenged,” he said.
“Some of those technologies have not worked as we expected so far. But also, as you know, when you’re refining a very old refinery that has been abandoned for some time, what we’re finding is that it’s becoming a little bit more complicated.
“So, we’re reviewing all our refinery strategies now. We hope before the end of the year, we’ll be able to conclude that review. That review may lead to us doing things slightly differently,” he added.
However, Mr Ojulari said NNPC remains uncertain whether the review will result in the sale of the refineries.
“But what we’re saying is that sale is not out of the question. All the options are on the table, to be frank, but that decision will be based on the outcome of the reviews we’re doing now,” he said.