In a stunning revelation that could reshape Nigeria’s oil sector, the Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mr. Bayo Ojulari, has hinted at the possible sale of the country’s long-troubled refineries, citing persistent setbacks in their rehabilitation.
Ojulari made the disclosure during the prestigious OPEC seminar held in Vienna, where he stated that the option to divest from Nigeria’s ailing refineries is now actively on the table. According to him, despite initial signs of progress, efforts to revive the Port Harcourt refinery have once again hit a brick wall—culminating in yet another shutdown in May.
“We are currently reassessing our refinery strategy,” Ojulari said. “We’ve encountered unexpected obstacles that are delaying progress, and as things stand, all options—including partial or full sale—are under review. A final decision will be made before the end of the year.”
This latest development marks a dramatic shift in NNPC’s stance, as the federal government had previously committed to revamping the refineries to reduce dependence on imported petroleum products. However, the recurring breakdowns, cost overruns, and extended project timelines have raised serious questions about the viability of the ongoing rehabilitation efforts.
Adding to the woes, Ojulari pointed out that Nigeria’s oil production costs remain alarmingly high, ranging between $25 to $30 per barrel—largely due to soaring security expenditures aimed at protecting pipelines and curbing theft in the Niger Delta region.
Energy analysts are already speculating that a sale could attract international investors eager to tap into Nigeria’s vast downstream potential, especially with the anticipated full operationalization of the Dangote Refinery. However, critics fear that privatization without proper oversight could lead to monopolies and worsen fuel affordability for ordinary Nigerians.
With a decision looming by year’s end, all eyes will remain on the NNPC and the Tinubu administration’s next move—will they finally break free from the decades-long refinery conundrum or deepen the cycle of missed opportunities?