The Federal Government has expressed readiness to sell off Nigeria’s state-owned refineries as part of ongoing reforms to attract fresh investment, enhance efficiency, and foster competition in the nation’s petroleum downstream oil sector
The Special Adviser to the President on Energy, Olu Verheijen, disclosed this during an interview with Bloomberg TV anchor Joumanna Bercetche on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference.
Verheijen said that relinquishing control of the refineries operated by the Nigerian National Petroleum Company Limited remains one of several reform options under consideration by the Tinubu administration.
She, however, noted that the refineries, long sustained by government subsidies, would only be let go if the right technical and financial partners are found. “Letting go of them is a possibility. It’s one of the options that you have to consider if you find the right technical partner with the right capital,” Verheijen stated.
She added that the facilities had for decades been sustained by government subsidies, which distorted the market and discouraged private sector participation. “The refineries have largely been sustained by subsidies, but now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she said.
Nigeria’s four state-owned refineries, in Port Harcourt, one in Warri, and another in Kaduna, have a combined installed capacity of 445,000 barrels per day. However, the plants have remained largely dormant for decades despite repeated turnaround maintenance projects that cost taxpayers billions of dollars.
The country continues to import refined petroleum products, making it one of the few major oil producers dependent on fuel imports for domestic consumption.
According to Verheijen, President Bola Tinubu’s administration is focused on restoring transparency, market efficiency, and commercial viability across the energy value chain.
She said the government’s new market-driven approach seeks to create a competitive environment where both public and private refineries operate under similar standards without undue subsidy interference.
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