The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has revealed that the sale of Nigeria’s aging state-owned refineries in Warri, Port Harcourt, and Kaduna remains a possibility as the company intensifies efforts to restructure its downstream operations.
Speaking to Bloomberg on Thursday at the sidelines of the 9th Organisation of Petroleum Exporting Countries (OPEC) International Seminar in Vienna, Ojulari explained that the decision would depend on the outcome of an ongoing comprehensive review of the refineries’ operational strategies.
“We’ve made quite a lot of investments in our refineries over the last several years and brought in a lot of technology. We’ve been challenged—some of those technologies have not worked as expected so far,” Ojulari said.
“When you are refining an old refinery that has been abandoned for some time, what we found is that they are a little bit more complicated. We are reviewing all our refinery strategies now. We hope that before the end of the year, we will conclude that review. That review will lead us to doing things slightly differently.”
When pressed on the prospect of outright sale, Ojulari emphasized that “sale is not out of the question,” but stressed that all options remain open until the review is finalized.
Strengthening pipeline security with local communities
Ojulari also highlighted the strides made in securing Nigeria’s crude oil infrastructure. The NNPCL, in collaboration with government security agencies and local community surveillance groups, has adopted a new approach that moves away from purely policing tactics.
“We have come a long way. It wasn’t a quick fix. We needed to create a sustainable means of livelihood and interdependency with the community,” he said.
“Today’s security is driven by the communities themselves, providing sustainability and jobs. So my confidence is built on this new model.”
This shift has been crucial in curbing pipeline vandalism and oil theft, two long-standing challenges undermining the country’s oil sector.
Crude supply to Dangote Refinery to remain commercial
On the supply of crude oil to the newly operational Dangote Refinery, Ojulari clarified that NNPCL will engage on a purely commercial basis, ruling out any policy-driven compulsion to sell local crude to the private facility.
“Dangote refinery is a commercial investment, not a national investment. It has the flexibility to import crude for its operations and also to serve all customers,” Ojulari explained.
“If Nigeria is going to supply more crude to Dangote refinery, it will be on a commercially willing buyer, willing seller basis and not because it is a policy.”
The 650,000 barrels-per-day Dangote Refinery, commissioned in May 2023, was positioned as a potential game-changer for Nigeria’s domestic fuel supply, aiming to reduce dependency on costly fuel imports.
Scaling up production targets
Ojulari also shared NNPCL’s medium-term production goals. Nigeria currently produces approximately 1.63 million barrels per day, including condensates. The company plans to increase this to 1.9 million barrels per day by the end of 2025, and reach 2.06 million barrels per day by 2027.
On natural gas, the NNPCL chief revealed ambitions to grow production from 7 billion cubic feet to 10 billion cubic feet by 2027, in line with Nigeria’s broader energy transition strategy.
What you should know
Nigeria’s refineries in Kaduna, Port Harcourt, and Warri have historically struggled with inefficiencies and underutilization, forcing the country to rely heavily on imports for refined petroleum products. This reliance has strained the economy and contributed to persistent fuel scarcity.
Industry observers believe that privatizing or selling off these refineries could unlock new capital, improve efficiency, and help reposition Nigeria’s downstream oil sector for global competitiveness.
As the review continues, stakeholders await further details on the possible restructuring or sale, which could reshape the future of Nigeria’s energy landscape.
