The federal government is reportedly exploring the possibility of selling the Nigerian National Petroleum Company (NNPC) Limited’s refineries in Warri, Port Harcourt, and Kaduna to private investors, aiming to boost competition within the nation’s oil refining industry.
Olu Verheijen, Special Adviser to President Bola Tinubu on energy, disclosed this during an interview with Bloomberg TV on the sidelines of the ADIPEC energy conference in Abu Dhabi, UAE, on Tuesday.
According to Verheijen, the potential sale is among several strategies being considered to attract technically capable partners with adequate capital to rehabilitate the refineries and enhance operational efficiency.
“It is one of the options under consideration if we can secure the right technical partner with the necessary capital,” she said.
She noted that the refineries had long been reliant on subsidies. With the recent removal of fuel subsidies, the government is seeking to reduce market distortions and foster a more competitive refining sector.
Earlier, in October, NNPC revealed it had initiated a thorough technical and commercial evaluation of its non-operational refineries to guide decisions on their future. In July, described the process of revamping the plants as “increasingly complex,” adding that a reassessment is expected to conclude by the end of the year.
Verheijen added that the broader objective is to enhance NNPC’s transparency and efficiency in preparation for a much-anticipated initial public offering (IPO).
“What matters most to the shareholders is an NNPC that is transparent, highly efficient, and delivers results,” she emphasized.