NNPC Speaks on Plans for PH, Warri, Kaduna Refineries As Dangote Says They May Never Work Again

• The NNPC has revealed that it is considering selling some of its refineries located in Port Harcourt and Warri
• The Nigerian government has spent billions of dollars to rehabilitate the refineries, but there are now doubts about whether they will function as intended
• The rehabilitation efforts have faced setbacks due to outdated infrastructure and underperforming technologies

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Bayo Ojulari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC), has revealed that there is ongoing consideration to sell some of the national refineries.

According to him, there are serious challenges in getting them to work efficiently despite rehabilitation efforts.

Bloomberg reports that Ojulari hinted at the decision while speaking at the 9th OPEC International Seminar in Vienna.

The NNPC boss also noted that a strategic review of the refinery operations is currently underway and is expected to be completed before the end of the year.

He said"

“So we are reviewing all our refinery strategies now. We hope that before the end of the year, we will be able to conclude that review.

That review may lead us to doing things slightly differently.”

When asked whether a sale of refineries was on the table, Ojulari said:

“Sale is not out of the question. 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 spends billions on refinery rehabilitation

Nigeria has been working to revive its long-idle state-owned refineries in Port Harcourt, Warri and Kaduna, Punch reports.

The Port Harcourt plant, which briefly restarted in November 2023 after years of inactivity, was shut again in May 2025 for maintenance.

Ojulari explained that the rehabilitation effort has been affected by ageing infrastructure and underperforming technologies.

He added:

“Over the past several years, we’ve invested heavily and introduced various technologies, but some have not delivered the expected results.

"What we’re discovering is that the process is more complicated than initially anticipated.”

Crude oil production targets

He also spoke on the high oil production costs in Nigeria, which he attributed to security expenses

NNPC boss stated that Nigeria’s operating cost per barrel ranges between $25 and $30, with pipeline protection accounting for a significant share.

“For the cost of crude production, there’s a capital cost and there are the operating costs.

“The operating cost right now in Nigeria is hovering over $20 per barrel, which is quite high.

“Part of that is because of the investment we’ve had to make in terms of security of our pipelines, which, as you know, today we have 100 per cent availability of our pipelines. That came out of significant investment.

“So we believe with time, with stability, that cost will start going down, but for now it’s somewhere between $25 and $30 a barre."

Despite the setbacks, Ojulari said NNPC is targeting an increase in Nigeria’s oil output to 1.9 million barrels per day by year-end.

Dangote explains why Nigeria's three Refineries will not work again

Earlier, Legit.ng reported that Aliko Dangote has explained why he believes the Nigeria three refineries may never work again, no matter the amount of money invested by the government.

Nigerian Billionaire also shared his story of how he almost purchased the NNPCL refineries

Reports confirm that over $18 billion was allocated and released for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.

Source: Legit.ng