Oil Marketers Back NNPCL Plans to Sell Nigeria’s Refineries

Nigerian oil marketers and industry stakeholders have endorsed plans by the federal government to sell off its long-struggling refineries, urging that the process be transparent, inclusive, and free from political influence.

The backing comes after the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, admitted that efforts to rehabilitate the country’s three major refineries in Port Harcourt, Warri, and Kaduna have yielded limited results, despite years of investment running into trillions of naira.

Speaking to Bloomberg at the OPEC International Seminar in Vienna, Austria, Mr Ojulari said the refineries, which have a combined capacity of 445,000 barrels per day, are severely outdated and cannot be effectively restored under current conditions. He revealed that the NNPCL is now reviewing its entire refinery strategy, with a final decision expected before the end of the year.

The news has generated  reactions across the industry, with many welcoming the potential privatisation as a necessary step to unlock investment and competition in Nigeria’s downstream sector.

Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), stated that selling the refineries could help end decades of waste and mismanagement.

“For years, government-run refineries have drained public resources with little or no output. We at PETROAN recommended privatisation months ago based on empirical analysis,” he said.

However, Mr Gillis-Harry warned that the process must be handled carefully. “This must not become another political arrangement. It should involve genuine industry players, including grassroots stakeholders. Refining is a business, and government has no business trying to run it.”

He also criticised the lack of accountability around recent repair timelines. “We were told refurbishment would be completed in 30 days. That timeline has passed, and there’s no visible progress. Nigerians deserve to know what is really going on.”

The refineries have been mostly inactive for years, forcing Nigeria, one of the world’s largest crude oil producers to rely heavily on imports for refined petroleum products. This has added pressure on foreign exchange reserves and contributed to fuel price volatility in the country.

Analysts say the success of the privatisation plan will depend on whether the federal government can resist vested interests and ensure the process is open, competitive, and aligned with national economic goals.