As Nigeria’s Federal Government gears up for a comprehensive review of its refining assets in 2025, insiders at the Nigerian National Petroleum Company Limited (NNPCL) signal a potential move to sell its state-owned refineries in Warri, Port Harcourt, and Kaduna. This decision stems from persistent challenges tied to underperformance, massive capital expenditure, and a renewed shift towards private sector involvement in oil infrastructure.
Reports indicate that both the Warri and Kaduna refineries have come under intense scrutiny following calls from downstream petroleum marketers to privatise Nigeria’s inefficient facilities. PETROAN, the Petroleum Products Retail Outlets Owners Association of Nigeria, recently urged the government to divest these assets to reputable private firms, emphasising that such a move would enhance efficiency and reduce financial burden
The Kaduna and Warri plants, each with capacities of 110,000 bpd and 125,000 bpd respectively, have long been plagued by operational disruptions, obsolete equipment, and cost overruns during refurbishment .
Further pressure emerged after the NNPCL dismissed the managing directors of all three refineries (Warri, Kaduna, and Port Harcourt) in April 2025, a shake‑up prompted by dismal output levels despite hundreds of millions of dollars allocated for rehabilitation.
Investigative reports from April revealed that the Port Harcourt refinery is operating significantly below 40 percent capacity, while the Warri plant, despite a nearly $900 million overhaul, has yet to produce Premium Motor Spirit (PMS), remaining offline since January 2025
Industry experts, including analysts from ICIR and governance watchers, argue that continuous underperformance and governance lapses necessitate a strategic exit. They believe that transitioning to a public–private partnership model, akin to the NLNG framework, could infuse the sector with much‑needed technical competence and operational discipline
On the government’s side, Finance Minister Wale Edun hinted at a forensic audit of NNPCL during the IMF/World Bank Spring Meetings, framing it as part of a broader reform to improve performance and accountability in the downstream sector
Should the 2025 review endorse full divestment of the Warri, Port Harcourt, and Kaduna refineries, Nigeria would signal a decisive turn towards private capital and market-driven efficiency in its oil sector, relegating state-owned refining to history.
This evolving narrative highlights the urgent need for reform in Nigeria’s refining infrastructure, and the government’s contemplation of divestment once the 2025 review is concluded could usher in a new chapter for the sector under private leadership.
