The Nigerian National Petroleum Company (NNPC) Limited is considering selling its three state-owned refineries in Warri, Port Harcourt, and Kaduna due to prolonged operational challenges and significant investment without desired returns. These refineries have been non-operational for years, despite $3 billion spent on repairs since 2021. The Port Harcourt refinery briefly processed crude oil in November 2024 but shut down again in May 2025 for maintenance.
NNPC’s Group Chief Executive Officer, Bayo Ojulari, cited technical issues with aging infrastructure and high production costs of $20-$30 per barrel, largely due to security-related expenses. The company has invested heavily in pipeline security, achieving 100% pipeline availability. However, the refineries’ operational challenges persist, prompting a comprehensive review of their operations.
The review, expected to conclude by the end of 2025, will inform NNPC’s decision on whether to sell the refineries or adopt an alternative strategy. Ojulari emphasized that “all options are on the table” regarding the refineries’ future. Industry experts, including Aliko Dangote, have questioned the viability of the aging facilities.
The Dangote Refinery in Lekki, with a capacity of 650,000 barrels per day, highlights the private sector’s growing role in Nigeria’s refining landscape. The potential sale of NNPC’s refineries has sparked mixed reactions among local business owners and stakeholders. Some believe new owners could do better, while others are concerned about transparency and benefits for the region.
As the review progresses, stakeholders are eagerly awaiting the outcome, which will determine the future of Nigeria’s refining sector. The decision to sell or retain the refineries will have significant implications for the country’s economy and energy landscape .
