The Nigerian National Petroleum Company (NNPC) Limited may sell off some of Nigeria’s refineries.
This was revealed by NNPC Group CEO Bayo Ojulari during an interview with Bloomberg on Thursday, July 10, 2025.
He spoke on the sidelines of the 9th OPEC International Seminar in Vienna, Austria.
Ojulari said the company is currently conducting a full strategic review of its refinery operations.
According to him, that review may lead to drastic decisions, including possible sales.
“We’re reviewing all our refinery strategies now,” he said.
“We hope to conclude the review before the end of the year,” he added.
When asked if a sale is part of the options, Ojulari didn’t mince words.
“Sale is not out of the question. All the options are on the table,” he said.
“But the final decision will depend on the review outcome.”
Nigeria’s refineries in Port Harcourt, Warri, and Kaduna have long struggled.
Despite billions spent on rehabilitation, progress has stalled repeatedly.
The Port Harcourt refinery resumed partial operations in late 2023 but shut down again in May 2024.
Obsolete infrastructure and outdated technology continue to cripple performance.
Ojulari admitted that fixing Nigeria’s refineries has been tougher than expected.
He blamed recurring failures on aging systems and underwhelming imported technologies.
“These are old refineries,” he said. “We brought in new technology, but it hasn’t worked as expected.”
Meanwhile, Nigeria’s crude oil production remains expensive.
Ojulari said the country spends between $25 and $30 to produce a single barrel.
High pipeline security costs are a major reason.
He explained that Nigeria now has full pipeline availability, but at a cost.
“Operating costs alone hover over $20 per barrel,” he said.
“That’s due to the huge investments in pipeline security,” he added.
Despite this, he expressed optimism.
Ojulari said NNPC aims to ramp oil production to 1.9 million barrels per day by year-end.
The announcement marks a major turning point in Nigeria’s oil industry.
If NNPC proceeds with the refinery sale, it would be the first of its kind.
Analysts say it could open the door to private sector efficiency and new investors.
