Nigeria’s state oil giant, the Nigerian National Petroleum Company (NNPC) Limited, is exploring the option of offloading its long-troubled refineries, despite billions of dollars already sunk into multiple rehabilitation efforts with little success to show.
The Group Chief Executive Officer of NNPCL, Bayo Ojulari, disclosed the development during the 9th OPEC International Seminar in Vienna, stating that the company is currently undertaking a comprehensive review of its refinery strategy, expected to be completed by the end of 2025.
“We’ve made significant investments over the years and brought in a lot of technologies, but we’ve faced considerable challenges,” Ojulari admitted. “Some of the technologies didn’t perform as expected. When dealing with aging refineries that have been inactive for years, things tend to get more complicated.”
Ojulari indicated that the ongoing strategy review could potentially lead to “doing things slightly differently,” suggesting that NNPCL may consider partial or full divestment of its refining assets.
The statement comes amid renewed scrutiny over the effectiveness of Nigeria’s refinery rehabilitation programme. Although NNPCL had announced the resumption of crude processing at the Port Harcourt refinery in late November 2024, the plant was shut down again just months later in May 2025 for further maintenance.
Over the years, Nigeria has committed vast public funds to restore its refining capacity. In March 2021, the government approved \$1.5 billion for the refurbishment of the Port Harcourt refinery. That was followed by an additional $1.48 billion approved for the phased rehabilitation of the Warri and Kaduna refineries. Despite timelines spanning up to 33 months, none of the facilities are currently producing refined petroleum products.
Aliko Dangote, Africa’s wealthiest businessman and founder of the world’s largest single-train refinery in Lagos, recently questioned the viability of Nigeria’s government-owned refineries, noting that despite an estimated $18 billion in cumulative investment, they remain largely dormant.
NNPC’s potential shift toward divestment could mark a turning point in Nigeria’s efforts to revive its domestic refining industry, long plagued by mismanagement, aging infrastructure, and a reliance on fuel imports.