Nigeria is open to selling its state-owned refineries as part of broader efforts to inject competition into an oil industry now dominated by the massive Dangote Refinery.

The Nigerian National Petroleum Company’s (NNPC) four refineries, with a combined capacity of 445,000 barrels per day, have processed little to no crude for decades, despite repeated rehabilitation attempts costing billions of dollars.

Selling them is now “one of the options” under consideration, according to Olu Verheijen, Special Adviser to the President on Energy.

“If you find the right technical partner with the right capital, it’s an option you have to consider,” she told Bloomberg TV.

Market reforms and new competition

Verheijen noted that the facilities had long been sustained by subsidies, which distorted the market. “Now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she said.

Any sale of the refineries would put new investors in direct competition with the 650,000-barrel-a-day Dangote Refinery, owned by Africa’s richest man, Aliko Dangote.

Dangote refinery recently said it already produces more gasoline and diesel than Nigeria can consume, and last month announced plans to more than double its capacity.

Meanwhile, NNPC said it is continuing efforts to revive its own refineries by seeking technical equity partners capable of operating its Warri, Port Harcourt, and Kaduna plants at international standards.

NNPC’s Group Chief Executive Officer, Bayo Ojulari, said last Thursday that the company is now “looking ahead with optimism” as it undertakes a comprehensive strategy to bring the facilities back online.

“We are dedicating significant time to a detailed review and are eager to implement our insights,” NNPC CEO Bayo Ojulari said in a post on X.

Verheijen added that the government still views an eventual initial public offering of NNPC as “an end destination.” She said, “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.”

Once operational, the refineries, together with the privately owned Dangote Petroleum Refinery, will ultimately transform Nigeria from a fuel importer to a net exporter, saving billions in foreign exchange annually and stabilising domestic supply.