The Federal Government is considering selling the refineries owned by the Nigerian National Petroleum Company (NNPC) Limited as part of efforts to encourage competition and efficiency in the downstream sector, according to Olu Verheijen, Special Adviser to President Bola Tinubu on Energy.
Verheijen made this known during an interview with Bloomberg TV on the sidelines of the ADIPEC Energy Conference held on Tuesday in Abu Dhabi, United Arab Emirates (UAE).
She explained that the government is open to exploring the option of divestment if it finds the right technical and financial partners capable of revitalising the refineries and ensuring sustainable operations.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” Verheijen said.
The presidential aide added that Nigeria’s refineries had long been sustained by subsidies, a situation that distorted the market. “But now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she noted.
In October, NNPC announced that it had begun a comprehensive technical and commercial review of its non-operational refineries located in Warri, Port Harcourt, and Kaduna. Earlier in July, the company’s Group Chief Executive Officer, Bayo Ojulari, described the refinery rehabilitation process as increasingly complex but assured that the ongoing reassessment would be concluded by the end of the year.
Speaking further, Verheijen also highlighted that the government envisions an eventual initial public offering (IPO) for NNPC as part of its long-term reform agenda.
“What’s really important to the shareholders is that we have an NNPC that’s a lot more transparent, a lot more efficient and delivers,” she said.
Ojulari, in his remarks on Tuesday, reaffirmed that the national oil company is improving transparency in its operations in preparation for the anticipated IPO.
The possible sale of NNPC’s refineries marks a significant step in Nigeria’s ongoing energy sector reforms aimed at driving private investment, boosting local refining capacity, and reducing dependence on imported petroleum products.
Melissa Enoch
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