The Federal Government has renewed moves to sell Nigeria’s three moribund refineries in Port Harcourt, Warri, and Kaduna, even as it intensifies efforts to acquire a larger stake up to 20 percent in the privately-owned Dangote Refinery.
This comes just days after the Group Managing Director of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Bayo Ojulari, disclosed that the company was pursuing new technical and equity partnerships to revive the long-dormant refineries.
Ojulari said the NNPCL had begun a comprehensive technical and commercial review of the facilities to determine the best structure for rehabilitation and investment.
The renewed privatization drive, however, appears to align with the government’s strategy to promote private sector dominance in the downstream petroleum sector, particularly by strengthening the position of the 650,000 barrels-per-day Dangote Refinery, which recently commenced production.
Speaking on the development, Special Adviser to President Bola Tinubu on Energy, Mrs. Olu Verheijen, told Bloomberg TV at the ADIPEC Energy Conference in Abu Dhabi, United Arab Emirates, that the Federal Government is open to selling its refineries under the NNPCL.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” she said.
Verheijen explained that the refineries had been sustained for years by government subsidies, but following subsidy removal, the administration was now seeking to attract investment and competition into the refining industry.
She added that the long-anticipated initial public offering (IPO) for NNPCL remains a key goal.
“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 noted.
Meanwhile, Ojulari confirmed that the NNPCL is working to increase its shareholding in the Dangote Petroleum Refinery to 20 percent.
Speaking to Reuters at the same Abu Dhabi conference, he recalled that NNPCL had initially proposed to acquire the 20 percent stake in 2021 for $2.76 billion.
It will be recalled that Dangote Group had earlier stated that Nigeria’s stake in the refinery had been reduced to 7.2 percent.
Ojulari further emphasized that the NNPCL is committed to deepening transparency in its operations as part of preparations for its eventual IPO.
“The IPO journey is by law. The Petroleum Industry Act prescribes that NNPC must work towards achieving an IPO. It’s not an option for us,” he said.
“We have begun publishing our monthly performance since May this year, and that has continued,” he added.
