Nigeria is open to selling state-owned refineries as part of an effort to boost competition in the industry, which is dominated by the giant Dangote Refinery.
Nigeria’s National Petroleum Co.’s four facilities, with a combined capacity of 445,000 barrels a day, have barely processed any crude for decades despite billions of dollars being spent to fix them.
Letting go of them is a possibility, according to Olu Verheijen, special adviser to the president on energy.
“It’s one of the options that you have to consider if you find the right technical partner with the right capital,” Verheijen said in an interview with Bloomberg TV anchor Joumanna Bercetche on the sidelines of the Adipec conference on Tuesday.
The plants have largely been sustained by subsidies, “but now that we’ve removed the subsidies, we’ve removed the distortions in that market,” she said.
Any buyers for the plants will compete with the giant 650,000 barrel-a-day refinery owned by Africa’s richest person, Aliko Dangote.
It already produces more gasoline and diesel than can be consumed locally, the company said in a statement last week.
Dangote last month announced plans to more than double the plant’s capacity.
Still, the NNPC said last week that as part of the process in getting its refineries working again, it is seeking technical equity partners that can operate its Warri, Port Harcourt and Kaduna plants at international standards.
“We are looking ahead with optimism to ensure our refineries operate effectively,” NNPC Chief Executive Officer Bayo Ojulari said in a post on X.
The government also sees a long-anticipated initial public offering for NNPC as “an end destination,” Verheijen 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.” (Bloomberg)
