This was revealed by the Group Chief Executive Officer, Bayo Ojulari, during an interview with Bloomberg on the sidelines of the 9th OPEC International Seminar held in Vienna, Austria.
Ojulari stated that a comprehensive strategic review of NNPC’s refinery operations is currently underway and is expected to be concluded before the end of 2025. He noted that the outcome of this review may prompt a shift in direction, possibly including partial or full divestment.
“So we’re reviewing all our refinery strategies now. We hope before the end of the year, we’ll be able to conclude that review,” Ojulari said. “That review may lead to us doing things slightly differently.”
When asked whether this shift could include putting the refineries up for sale, the NNPC boss clarified that “sale is not out of the question.” He added, “All the options are on the table, to be frank, but that decision will be based on the outcome of the reviews we’re doing now.”
Nigeria’s state-owned refineries — located in Port Harcourt, Warri, and Kaduna — have long suffered from years of neglect and underperformance.
Although operations briefly resumed at the Port Harcourt facility in November2023, it was shut down again in May 2025 for maintenance.
Ojulari attributed the setbacks to ageing infrastructure and ineffective technologies deployed during the rehabilitation process.
“We’ve made quite a lot of investment over the last several years and brought in a lot of technologies,” he said. “Some of those technologies have not worked as we expected. Refining an old refinery that has been abandoned for some time is proving to be more complicated than anticipated.”
He also shed light on Nigeria’s high cost of crude oil production, estimating operational expenses at $25 to $30 per barrel — a figure significantly higher than the global average.
“The operating cost right now in Nigeria is hovering over $20 per barrel, which is quite high,” Ojulari explained. “Part of that is due to the investment we’ve made in pipeline security. Today, we have 100 per cent pipeline availability, but it came at a cost.”
Despite the operational and strategic challenges, NNPC remains optimistic about Nigeria’s production outlook. The company is targeting an increase in national crude output to 1.9 million barrels per day by the end of the year.
The anticipated review outcome is expected to shape the next phase of the company’s approach to refinery management and oil sector reform. Whether that future includes selling off NNPC’s underperforming assets remains to be seen.
