The Federal Government has indicated its readiness to sell off its publicly-owned refineries in a move aimed at attracting investors, boosting competition, and improving efficiency in the downstream market of the hydrocarbon resources industry.
The Special Adviser to President Bola Tinubu on Energy, Olu Verheijen, gave this hint during an interview with Bloomberg TV anchor, Joumanna Bercetche, on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on Tuesday.
Verheijen said that selling the refineries owned by the Nigerian National Petroleum Company Limited (NNPCL) was among the reform options the government is considering to reposition the energy sector for sustainable growth.
She confirmed: “It’s one of the options that you have to consider if you find the right technical partner with the right capital.”
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Noting the refineries have largely been sustained by subsidies over the years, the President’s aide explained that “but now that the government had removed the subsidies, the distortions in that market have been eliminated.
Specifically, Verheijen maintained that the present administration’s reform agenda aimed to restore market efficiency and transparency, ensuring that the petroleum sector operates on purely commercial terms.
According to her, the government considers a long-anticipated initial public offering for NNPC as an end destination,
Verheijen clarified: “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.”
Meanwhile, the NNPCL stated last week that it was already searching for technical equity partners for the management of the Port Harcourt, Kaduna and Warri refineries to enhance their operations to best global standards.
In his post on X (formerly Twitter) the company’s Group Chief Executive Officer, Engr. Bayo Ojulari, stated: “We are looking ahead with optimism to ensure our refineries operate effectively.”
It would be recalled that last June, the Mele Kyari-led NNPCL’s management ruled out the sale of the Port Harcourt refinery after spending trillions of Naira on its rehabilitation, reaffirming its commitment to fully rehabilitate the facility for optimal output.
