The Federal Government says it is open to selling the Warri, Port Harcourt, and Kaduna refineries to attract investment and promote competition in Nigeria’s oil refining sector.
Olu Verheijen, Special Adviser to President Bola Tinubu on Energy, disclosed this during an interview with Bloomberg TV on the sidelines of the ADIPEC Energy Conference in Abu Dhabi, United Arab Emirates, on Tuesday.
Verheijen said the move is among several options being considered to improve efficiency in the downstream sector.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” she said.
She explained that the refineries, which had operated for years under government subsidy, now face a more competitive environment following the removal of fuel subsidies.
“Now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she added.
In October, the Nigerian National Petroleum Company (NNPC) Limited announced it had begun a comprehensive technical and commercial review of the three state-owned refineries.
Earlier in July, NNPC Group Chief Executive Officer, Bayo Ojulari, said the process of revamping the facilities had become “a bit more complicated,” noting that the company aimed to complete its reassessment by the end of the year.
Verheijen also said the government views the planned initial public offering (IPO) of NNPC as a long-term goal aimed at strengthening transparency and efficiency within the company.
“What’s really important to the shareholders is that we have an NNPC that’s a lot more transparent, a lot more efficient and delivers,” she stated.
