Nigeria’s national oil company is considering selling some of its struggling refineries after spending billions on repairs that haven’t worked. NNPC Group CEO Bayo Ojulari revealed this major policy shift on Thursday, explaining that years of trying to fix the old refineries in Port Harcourt, Warri and Kaduna have not produced good results.
The refineries, which should help Nigeria produce its own fuel, have mostly been closed for years despite repeated promises to get them working. The Port Harcourt refinery briefly reopened last November but shut down again in May for more repairs. Ojulari said the equipment is too old and the new technologies they tried didn’t work as planned.
“We’re looking at all options, including selling some refineries,” Ojulari told reporters at an oil conference in Vienna. “We hope to finish this review by December.” This could be a big change for Nigeria, which has kept control of these refineries for decades even as they kept losing money.
Key Points from NNPC’s Refinery Review
✔ All Options Open: Sale remains a possibility among multiple restructuring strategies
✔ Timeline: Final decision expected before December 2024
✔ Challenges Cited:
- Outdated infrastructure requiring constant maintenance
- Underperforming new technologies
- Complexities in reviving long-dormant facilities
✔ Current Status:
- Port Harcourt refinery operated briefly (Nov 2023-May 2024) before another shutdown
- Warri and Kaduna refineries remain non-operational
Broader Oil Sector Challenges
🔹 High Production Costs: $25-$30/barrel due to massive pipeline security spending
🔹 Output Goals: Targeting 1.9 million barrels/day production by year-end
🔹 Energy Transition Pressures: Global shift affecting investment decisions
Ojulari’s Statement:
“We’re conducting a full refinery strategy review. Sale isn’t ruled out, but we’ll decide after assessing all technical and economic factors.”
Why This Matters
✅ Could mark historic shift from state-run to privatized refining
✅ Impacts Nigeria’s fuel import dependence and subsidy costs
✅ Affects energy security and regional supply chains
