FG Considers Sale of Warri, Port Harcourt, and Kaduna Refineries
The Federal Government of Nigeria is contemplating the sale of refineries owned by the Nigerian National Petroleum Company (NNPC) Limited, as part of strategic efforts to stimulate competition within the refining sector.
This announcement was made by Olu Verheijen, the Special Adviser to President Bola Tinubu on Energy, during an interview with Bloomberg TV at the ADIPEC energy conference in Abu Dhabi, UAE.
Verheijen emphasized that the potential sale is contingent on finding the right technical partner equipped with sufficient capital. She mentioned that the refineries have primarily relied on government subsidies, but with the recent removal of these financial supports, market distortions have been alleviated.
In October, the NNPC initiated a comprehensive technical and commercial assessment of its underperforming refineries located in Warri, Port Harcourt, and Kaduna. Bayo Ojulari, the Group Chief Executive Officer of NNPC, acknowledged the increasing complexity involved in revitalizing state-owned refineries but indicated that a reassessment of the situation is expected to conclude by the end of the year.
Verheijen also highlighted the government’s long-term vision for NNPC, which includes a much-anticipated initial public offering (IPO). She underscored the importance of enhancing transparency and operational efficiency within the company to better serve its shareholders.
On the same day, Ojulari reiterated NNPC’s commitment to improving transparency in its operations as part of preparations for the forthcoming IPO.
