NNPC Evaluates Refinery Divestment Amid Ongoing Rehabilitation Costs

The Nigerian National Petroleum Company Limited (NNPC) is reviewing strategic options for its three state-owned refineries in Port Harcourt, Warri, and Kaduna, including the possibility of partial or full asset divestment, according to senior officials familiar with the matter. The move comes as prolonged rehabilitation efforts continue to face operational setbacks despite significant financial outlays.

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This review forms part of a broader restructuring initiative at NNPC aimed at enhancing operational efficiency and realigning the company’s capital expenditure with long-term performance goals. Under its reorganization as a limited liability company, NNPC is also addressing inherited supply chain liabilities and implementing governance reforms under new executive leadership.

According to industry analysts, the sustainability of continued state-led refinery rehabilitation is increasingly under scrutiny, particularly as private-sector alternatives, such as the Dangote Refinery, move closer to full-scale production and promise to redefine Nigeria’s domestic fuel supply landscape.

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Any decision to divest or commercialize the refineries will have implications for future investment planning, downstream infrastructure priorities, and potential private-sector partnerships. Market observers expect that the outcome of NNPC’s strategic review will play a critical role in shaping Nigeria’s long-term refining capacity and its path toward energy self-sufficiency.

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