NNPCL Considers Selling Non-Performing Refineries, Reviews Downstream Operations

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The Nigerian National Petroleum Company Limited (NNPCL) is conducting a comprehensive review of its downstream operations, with the possible sale of the country’s underperforming refineries—Warri, Port Harcourt, and Kaduna—remaining an option.

NNPCL’s Group Chief Executive Officer, Bayo Ojulari, disclosed this in an interview with Bloomberg on the sidelines of the 9th OPEC International Seminar in Vienna.

He explained that despite significant investments and technological upgrades, the refineries have not delivered expected results due to their aged and neglected state.

“We are reviewing all our refinery strategies and hope to conclude by year-end. This will guide our next steps, which may include operational changes or divestment,” Ojulari said. “A sale isn’t off the table, but the final decision depends on the review’s outcome.”

Ojulari highlighted improvements in crude infrastructure security, crediting a shift from traditional policing to community-based surveillance for enhanced pipeline protection.

“Our current model—collaborating with local communities and security agencies—has proven more sustainable than past approaches,” he said. “This strategy provides jobs and fosters interdependency, ensuring long-term security.”

Addressing crude supply concerns for the Dangote Refinery, Ojulari emphasized that transactions will remain market-driven, not policy-enforced.

“Dangote is a private venture, not a national project. It can source crude globally, though we’re working to increase Nigerian supply—on commercial terms,” he stated, reinforcing the government’s commitment to private-sector freedom.

Nigeria aims to boost oil production to 2.06 million barrels per day (bpd) by 2027, up from 1.63 million bpd (including condensates) currently. Gas output is also projected to rise from 7 billion cubic feet to 10 billion cubic feet within the same period.

Nigeria’s state-owned refineries have remained largely non-functional for years, forcing reliance on fuel imports. The Dangote Refinery, commissioned in May 2023, was expected to ease shortages, but operational delays persist.

Ojulari’s remarks signal a potential major restructuring of Nigeria’s refining sector, with privatization emerging as a viable solution for the struggling assets.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled: Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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