By Ayomide Otitoju
The Nigerian National Petroleum Company Limited (NNPC) is considering selling off its refineries in Port Harcourt, Warri, and Kaduna following persistent challenges in their rehabilitation efforts, the company’s Group Chief Executive Officer, Bayo Ojulari, has revealed.
Ojulari disclosed this during an interview with Bloomberg on the sidelines of the 9th OPEC International Seminar held on Thursday in Vienna, stating that a strategic review of NNPC’s refining operations is currently underway and may lead to a change in direction.
“We’re reviewing all our refinery strategies now and hope to conclude by year-end. All options, including sale, are on the table,” he said.
The statement signals a major policy shift as Nigeria struggles to revive its ageing refinery infrastructure. While the Port Harcourt Refinery briefly resumed operations in November 2023, it was again shut down in May 2025 for further maintenance.
Ojulari blamed recurring setbacks on outdated infrastructure and unreliable technology systems.
“Despite significant investments, some technologies haven’t performed as expected. These are old refineries—many of them idle for years—and bringing them back online has proven more complicated than anticipated,” he explained.
He also raised alarms over Nigeria’s high oil production costs, which currently range between $25 and $30 per barrel, citing the capital required for pipeline security as a major cost driver.
“Operating costs alone exceed $20 per barrel,” Ojulari said. “We’ve had to invest heavily to secure pipeline infrastructure, and while it’s paid off in terms of availability, it has inflated production costs.”
Despite these challenges, Ojulari expressed confidence in NNPC’s forward outlook. He said the company is targeting a production ramp-up to 1.9 million barrels per day by the end of 2025, underscoring a continued commitment to stabilizing and growing Nigeria’s oil output.
The possible sale of the refineries, if approved, would mark a significant development in Nigeria’s downstream oil sector, potentially opening doors for private sector-led revitalization.
