Is NNPCL Finally Letting Go of Nigeria’s Refineries?

After years of failed revamps, ballooning costs, and public frustration, the Nigerian National Petroleum Company Limited (NNPCL) may be preparing to let go of its long-struggling refineries.

In what could signal a major shift in Nigeria’s oil policy, NNPCL’s Group Chief Executive Officer, Bayo Ojulari, recently admitted that the sale of the country’s refineries is now on the table. 

Speaking during the 9th OPEC International Seminar in Vienna, Ojulari acknowledged the harsh reality: efforts to bring the ageing refineries back to life have faced unexpected setbacks, both technically and financially.

“Some of those technologies have not worked as we expected,” he said, pointing to the ongoing rehabilitation of the Port Harcourt, Warri, and Kaduna plants. “When you’re refining a very old refinery that has been abandoned for some time, it’s becoming a little bit more complicated.”

Ojulari’s comments reflect a growing frustration within the state oil company. Billions of naira have already been poured into reviving the refineries, yet the results remain far from promising. 

For example, the Port Harcourt refinery, Nigeria’s oldest, commissioned in 1965 briefly resumed crude processing in late 2024, only to be shut down again in May 2025. It has remained idle since then.

Meanwhile, the Warri and Kaduna refineries are still undergoing refurbishment, with no clear timeline for completion. Now, NNPCL says it is reviewing the entire refinery operation, and nothing is off the table including a possible sale.

“We hope before the end of the year, we’ll be able to conclude that review,” Ojulari added. “Sale is not out of the question. All the options are on the table, to be frank.”

S this a burden that’s no longer sustainable?

The refineries, once seen as critical assets, have over time turned into financial sinkholes. 

Even with recent investments, Nigeria continues to rely heavily on imported petroleum products, contributing to economic strain and inflation. 

For a nation that pumps over a million barrels of crude per day, the inability to refine at home remains a contradiction.

In addition to the challenges with ageing infrastructure, Ojulari pointed to another major problem: the cost of keeping the oil flowing. Nigeria’s oil production now comes with a hefty price tag, largely due to security concerns in the Niger Delta. 

He revealed that NNPCL is currently spending more than $20 per barrel on operations, largely due to investments in securing pipelines from theft and sabotage.

“Today we have 100 percent availability of our pipelines,” he said. “But that came at a cost.”

At a time when global oil markets are volatile and competition is increasing, Nigeria’s inability to refine its own crude efficiently while also grappling with rising costs makes the current system increasingly unsustainable.

What comes next?

If NNPCL does decide to sell the refineries, it would mark a historic departure from decades of state control. The move could attract private investors and open the door for more efficient, profit-driven refinery operations in Nigeria. 

However, it also raises questions: Who would be willing to buy these ageing assets? And would a sale genuinely translate into better fuel access and lower costs for Nigerians?

What is clear is that NNPCL is no longer pretending all is well. The honesty in Ojulari’s remarks signals a willingness to face hard truths, something many Nigerians have long demanded.