After $3bn Repairs, NNPC Considers Selling Nigeria’s 445,000bpd Refineries

The Nigerian National Petroleum Company (NNPC) Limited may sell off the nation’s four state-owned refineries following years of costly but underwhelming rehabilitation efforts.

Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, revealed during an interview with Bloomberg at the 9th OPEC International Seminar in Vienna that the company is reassessing its refinery strategy after a series of failed revamp efforts. According to him, a comprehensive internal review of the refineries is underway and may result in a shift toward privatization by the end of 2025.

Despite committing over $3 billion between 2021 and 2023 to overhaul the Port Harcourt, Warri, and Kaduna refineries, the much-anticipated revival has stalled, marred by persistent technical challenges and delays. The largest of these efforts began with the Federal Executive Council’s $1.5 billion approval in 2021 to rehabilitate the 61-year-old Port Harcourt Refinery, which temporarily resumed operations in 2023 but was shut down again in May 2025 for maintenance.

The Warri and Kaduna refineries, aged 46 and 44 respectively, are still undergoing rehabilitation with no definite completion date. Combined, Nigeria’s four refineries have a total installed capacity of 445,000 barrels per day, but have been largely inactive or grossly underperforming for years.

Ojulari noted that while the company has deployed modern technologies and invested heavily in recent years, the results have fallen short due to the complexities of reviving ageing infrastructure that has remained dormant for extended periods.

The development comes amid mounting public and legislative criticism. Lawmakers have repeatedly raised concerns over NNPC’s historical refinery expenditures, with reports alleging that over N11.35 trillion (approximately $25 billion) was spent on maintenance over the past decade without significant output.

Ojulari hinted that divestment might align with broader oil sector reforms aimed at encouraging private sector participation. If the sale proceeds, it would mark a significant departure from decades of government-led attempts to resuscitate Nigeria’s downstream oil assets.

In the same interview, he addressed Nigeria’s high crude oil production costs, which range between $20 and $30 per barrel, attributing them largely to the cost of securing oil infrastructure. Nonetheless, he highlighted progress in securing pipelines, saying the country now enjoys 100 per cent pipeline availability.

Ojulari expressed optimism about production growth, stating that Nigeria aims to reach 1.9 million barrels per day by the end of 2025, even as current output remains below OPEC targets.