Nigeria is exploring the sale of its state-owned refineries to increase competition in a sector dominated by Africa’s largest facility, the Dangote Refinery.
The Nigerian National Petroleum Corporation (NNPC) operates four refineries with a combined capacity of 445,000 barrels per day, but these plants have processed minimal crude for decades despite billions spent on repairs.
Olu Verheijen, special adviser to the president on energy, said selling the refineries is an option if suitable technical partners with adequate capital are found.
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She noted that the removal of fuel subsidies has eliminated market distortions, potentially making the sector more attractive to investors.
Prospective buyers would compete with Dangote’s 650,000 barrel-per-day refinery, which already produces more gasoline and diesel than Nigeria consumes and plans to more than double its output.
Meanwhile, NNPC is seeking technical equity partners to operate its Warri, Port Harcourt, and Kaduna plants at international standards.
Verheijen also highlighted a potential NNPC initial public offering as a long-term goal, emphasizing transparency, efficiency, and improved performance as priorities for the state-owned corporation.
