FG Opens Door to NNPC Refinery Sale, Targets Transparency and Efficiency in Energy Sector Reforms, Says Olu Verheijen, the Special Adviser to President Bola Ahmed Tinubu on Energy

The Federal Government of Nigeria has expressed readiness to consider the sale of the Nigerian National Petroleum Company (NNPC) Limited’s refineries as part of its broader strategy to boost efficiency, transparency, and competition in the country’s oil refining sector.

Olu Verheijen, the Special Adviser to President Bola Ahmed Tinubu on Energy, disclosed this in an interview with Bloomberg TV on the sidelines of the ADIPEC Energy Conference held in Abu Dhabi, United Arab Emirates (UAE), on Tuesday.

Verheijen said that the government is open to selling the refineries if the right technical partner and investor with adequate capital emerge, adding that the move aligns with the administration’s reform agenda aimed at enhancing private participation in the energy sector.

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

According to her, the state-owned refineries, which have suffered years of underperformance and poor maintenance, were largely sustained by fuel subsidies.

However, with the removal of subsidy under the Tinubu administration, the government is now focused on eliminating distortions and fostering market-driven reforms.

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

In October, the NNPC confirmed it had begun a comprehensive technical and commercial review of its moribund refineries located in Warri, Port Harcourt, and Kaduna, as part of efforts to determine their future viability.

Earlier in July, the Group Chief Executive Officer (GCEO) of NNPC, Bayo Ojulari, admitted that revamping the refineries has become “a bit more complicated,” hinting that the company is conducting an ongoing reassessment expected to be completed by the end of the year.

Speaking further, Verheijen revealed that the government envisions a long-term plan that includes a potential Initial Public Offering (IPO) for NNPC Limited, describing it as an “end destination” for the company’s restructuring process.

“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 said.

On the same day, Ojulari reaffirmed that the NNPC has intensified efforts to enhance transparency and accountability in its operations ahead of the much-anticipated IPO.

The ongoing reforms signify a bold shift in Nigeria’s oil and gas landscape, signaling the Tinubu administration’s determination to transition NNPC from a state-dependent enterprise into a globally competitive, profit-driven energy corporation capable of attracting foreign investment and ensuring energy security for Africa’s largest economy.