The Nigerian National Petroleum Company (NNPC) Limited has hinted that it may sell off the nation’s ageing refineries, as efforts to revamp them have become more complex and expensive than anticipated.
Group Chief Executive Officer of the NNPCL, Bayo Ojulari, revealed this in an interview with Bloomberg on the sidelines of the 9th OPEC International Seminar in Vienna, Austria.
He said while significant investments had gone into rehabilitating the refineries, particularly the Port Harcourt, Warri, and Kaduna plants, the results have not met expectations.
“Some of those technologies have not worked as we expected so far. When you’re refining a very old refinery that has been abandoned for some time, it’s becoming a little bit more complicated,” Ojulari explained.
The Port Harcourt refinery, which resumed crude processing in November 2024, was abruptly shut down in May 2025 for maintenance and has remained idle.
Warri and Kaduna refineries are still under rehabilitation. Ojulari confirmed that a full review of refinery operations is underway and could lead to dramatic shifts in strategy.
“We hope before the end of the year, we’ll be able to conclude that review. Sale is not out of the question. All the options are on the table, to be frank,” he said.
Pipeline Security Driving Production Costs
The NNPCL chief also shed light on the steep operating costs of crude oil production in Nigeria, largely due to security-related spending.
“The operating cost right now in Nigeria is hovering over $20 per barrel.
“That came out of a significant investment in pipeline security. Today we have 100 per cent availability of our pipelines,” he noted.
Ojulari, however, expressed optimism that stability will eventually drive down these costs, which currently range between $25 and $30 per barrel.
