The Federal Government is considering the sale of Nigeria’s state-owned refineries as part of ongoing economic reforms aimed at attracting investors, boosting competition, and improving efficiency in the downstream oil sector.

Nigeria’s four refineries, located in Port Harcourt, Warri, and Kaduna, have a combined installed capacity of 445,000 barrels per day but have remained largely dormant for decades despite repeated turnaround maintenance projects costing billions of dollars.

Special Adviser to the President on Energy, Ms. Olu Verheijen, disclosed the plan during an interview with Bloomberg TV anchor Joumanna Bercetche on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on Tuesday.

“It’s one of the options to consider if the right technical partner with sufficient capital is identified,” Verheijen said.

She noted that the refineries had previously been sustained by subsidies, but “with subsidies now removed, market distortions have been eliminated.”

According to her, President Bola Tinubu’s reform agenda seeks to restore market transparency and efficiency by ensuring that the petroleum sector operates on purely commercial terms.

The Nigerian National Petroleum Company Limited (NNPCL), which owns the refineries, recently announced that it was seeking equity partners capable of managing and operating them to international standards.

NNPC Group Chief Executive Officer, Mr. Bayo Ojulari, said last week that efforts were ongoing “to ensure our refineries operate effectively”.

Verheijen added that the government ultimately envisions an initial public offering (IPO) for NNPC. “What matters most to shareholders is having an NNPC that is transparent, efficient, and delivers results,” she said.