Why FG may sell NNPC refineries – Verheijen

The Federal Government has expressed readiness to sell the Nigerian National Petroleum Company Limited (NNPCL) refineries if the right technical and financial partners are found, according to Olu Verheijen, Special Adviser to President Bola Tinubu on Energy.

Sources reports that Verheijen disclosed this in an interview with Bloomberg TV on the sidelines of the ADIPEC Energy Conference in Abu Dhabi, United Arab Emirates (UAE), on Tuesday. She said the plan is part of broader reforms to enhance competition and efficiency in Nigeria’s downstream oil sector.

The presidential aide explained that selling the refineries was one of several options under consideration to revitalise the sector.

“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” Verheijen said.

She noted that Nigeria’s state-owned refineries have been sustained for years through government subsidies, a practice that distorted the petroleum market.

“But now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she added.

In October, the NNPC announced that it had begun a comprehensive technical and commercial review of its three major refineries, Warri, Port Harcourt, and Kaduna, as part of efforts to determine their viability.

Similarly, on July 11, the Group Chief Executive Officer (GCEO) of NNPC, Bayo Ojulari, acknowledged that the process of revamping the refineries had become “a bit more complicated,” adding that the company expected to complete its reassessment before the end of the year.

Verheijen also reaffirmed that the Federal Government’s long-term plan includes a public listing of NNPC, which she described as “an end destination.”

“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 stated.

She emphasised that President Tinubu’s administration is committed to ensuring NNPC operates under global best practices, with improved transparency and accountability.

On his part, Ojulari confirmed that NNPC has been enhancing transparency across its operations in preparation for the much-anticipated initial public offering (IPO).