NNPCL May Sell Port Harcourt, Warri, Kaduna Refineries – Ojulari
The Nigerian National Petroleum Company Limited (NNPCL) may be considering the sale of its three major refineries located in Port Harcourt, Warri, and Kaduna, according to recent comments made by energy expert Olu Ojulari. The move, if executed, would represent a significant shift in Nigeria’s downstream oil sector and could signal the government’s readiness to fully embrace privatization in the face of longstanding operational challenges.
Speaking at an industry forum, Ojulari suggested that the government is increasingly aware of the limitations and inefficiencies tied to state-run refinery management. He emphasized that despite several rehabilitation efforts, the facilities have struggled to meet performance expectations, costing the country billions of naira in maintenance without producing sufficient output.
“The conversation is gaining ground within policy circles. If the refineries in Port Harcourt, Warri, and Kaduna continue to underperform, NNPCL may eventually opt for divestment to attract private sector investment and efficiency,” Ojulari stated.
Nigeria has long battled with the paradox of being a crude oil-producing giant while spending heavily on imported refined products. The refineries, with a combined capacity of over 445,000 barrels per day, have largely remained inactive for years, leading to reliance on importation and heavy subsidies.
Ojulari noted that potential buyers—both local and international—have shown interest, particularly in the Port Harcourt refinery, which recently underwent a partial upgrade. However, he warned that such a move must be backed by transparency, regulatory clarity, and political will to avoid the failures of past privatization attempts.
The NNPCL is yet to release an official statement confirming or denying the development. However, insiders within the oil and gas sector believe that privatizing the refineries could revitalize Nigeria’s refining capacity, reduce import dependency, and attract much-needed foreign direct investment.
As the nation grapples with fuel subsidy removal and rising domestic energy demands, the potential sale of the Port Harcourt, Warri, and Kaduna refineries could become a pivotal moment in Nigeria’s energy sector reform agenda.
