The Nigerian National Petroleum Company Limited (NNPCL) may soon take the bold step of divesting from its long-troubled refineries in Kaduna, Warri, and Port Harcourt. This potential shake-up comes as the company undertakes a comprehensive review of its downstream operations and long-term refining strategy.

Speaking during an exclusive interview with Bloomberg on the sidelines of the 9th Organisation of Petroleum Exporting Countries (OPEC) International Seminar in Vienna on Thursday, July 11, 2025, NNPCL Group CEO Bayo Ojulari revealed that the company is reassessing its approach to refinery management—an overhaul that could eventually lead to asset sales.

Old Refineries Under Review: Sale Not Ruled Out

Ojulari explained that the state-run oil giant has invested heavily in modernizing the country’s three main refineries in recent years. However, those efforts have faced significant setbacks.

“We’ve invested substantially in upgrading the refineries, deploying advanced technologies,” he said. “Unfortunately, some of those technologies didn’t perform as expected. When you’re trying to restart an aging refinery that’s been idle for years, the process becomes even more complex.”

As part of this re-evaluation, NNPCL aims to finalize a new strategy before the end of the year. Ojulari stated that everything is on the table—including a potential sale of the refineries.

“I can’t confirm a sale at this time, but it is not off the table,” he clarified. “The final decision will hinge on the outcome of the ongoing review.”

New Community-Driven Model Improves Pipeline Security

Ojulari also discussed Nigeria’s renewed approach to protecting its oil infrastructure—particularly crude oil pipelines, which have historically suffered from rampant theft and sabotage.

Instead of relying solely on conventional policing, the NNPCL has introduced a hybrid model involving local community surveillance and security agencies. This model, according to Ojulari, has proven far more sustainable and effective.

“We’ve come a long way from where we were,” he noted. “Our current model engages community-based security groups. It’s created jobs, fostered trust, and enhanced sustainability. The level of pipeline availability now is a direct result of community participation.”

Ojulari emphasized that building interdependence between host communities and oil operations has been key to curbing vandalism, which has historically crippled Nigeria’s crude output.

Crude Supply to Dangote Refinery Will Be Commercial, Not Political

Addressing questions about crude oil supply to the Dangote Refinery, Ojulari made it clear that the relationship will remain strictly commercial. He dismissed any notion of a government mandate forcing NNPCL to prioritize the refinery.

“Let’s be clear: the Dangote Refinery is a private commercial venture, not a national investment,” he explained. “It has the flexibility to buy crude from both domestic and international markets.”

Ojulari stressed that crude supply from Nigeria to Dangote will operate on a willing buyer, willing seller basis, not by government decree.

“What we’re trying to do is reduce state control over private business operations. Nigeria will continue to supply crude where it makes commercial sense,” he affirmed.

Production Targets: Crude Oil and Gas Outputs Set to Rise

Ojulari also shared updates on Nigeria’s production forecasts. The country, he said, is steadily increasing its output with the goal of reaching 2.06 million barrels per day by 2027.

In March 2025, Nigeria was producing approximately 1.56 million barrels per day. That figure has now climbed to 1.63 million barrels daily, including condensates.

“By the end of 2025, we’re targeting 1.9 million barrels per day,” he stated confidently.

In addition to boosting oil output, NNPCL is focused on increasing natural gas production. The target is to raise gas output from 7 billion cubic feet per day to 10 billion cubic feet daily by 2027.

Refinery Woes: Longstanding Burden on the Economy

Nigeria’s three state-owned refineries—located in Kaduna, Port Harcourt, and Warri—have remained largely dormant for years, forcing Africa’s largest oil producer to rely heavily on imported refined petroleum products.

This overdependence on fuel imports has placed immense strain on Nigeria’s economy, contributing to inflation and foreign exchange challenges.

In May 2023, hopes for change were rekindled when the Dangote Refinery, the largest of its kind in Africa, was officially launched. The refinery, which is expected to process 650,000 barrels of crude per day at full capacity, has been seen as a potential game-changer in ending Nigeria’s long-standing fuel import crisis.

What Lies Ahead?

With the future of NNPCL’s refinery assets hanging in the balance, industry stakeholders and Nigerians alike are closely watching the company’s next steps. Should the government opt to sell off the non-performing refineries, it could mark a major turning point in Nigeria’s oil sector, finally closing the chapter on decades of inefficiency and losses.

At the same time, Ojulari’s emphasis on community-led pipeline protection, market-based crude supply, and clear production targets signals a more modern and performance-driven approach to Nigeria’s energy strategy.

Whether or not the review leads to divestment, one thing is clear: NNPCL is poised for a major transformation—one that could redefine Nigeria’s role in global energy markets.