In a dramatic reversal that signals Nigeria’s determination to maintain control over its critical energy infrastructure, the Nigerian National Petroleum Company Limited (NNPCL) has definitively ruled out selling the Port Harcourt Refining Company, marking a policy shift just weeks after its leadership hinted at potential divestment.
The announcement, delivered by Group Chief Executive Officer Bashir Ojulari during a packed town hall meeting at NNPCL Towers in Abuja on Tuesday, comes as Nigeria grapples with persistent challenges in its downstream petroleum sector and mounting public criticism over the fate of the country’s refineries.
From “All Options” to Firm Commitment
The reversal follows controversial comments Ojulari made earlier this month at the 2025 OPEC Seminar in Vienna, where he told Bloomberg that “all options are on the table” regarding the company’s refineries, sparking widespread speculation about potential privatization. The initial remarks had sent shocks through Nigeria’s energy sector, raising concerns about the government’s commitment to domestic refining capacity.
However, in Tuesday’s address, Ojulari struck a markedly different tone, emphasizing that the decision to retain the Port Harcourt facility was not a policy U-turn but rather the result of comprehensive technical and financial assessments of the company’s three major refineries in Port Harcourt, Kaduna, and Warri.
Technical Challenges Drive Strategic Rethink
Ojulari characterized any potential sale as “ill-advised and sub-commercial,” revealing that detailed reviews had exposed significant flaws in the company’s earlier rehabilitation strategy. The NNPCL chief acknowledged that the previous decision to operate the Port Harcourt refinery before completing its full rehabilitation had been “ill-informed and sub-commercial.”
The admission represents a rare moment of institutional self-reflection for the state oil company, which has faced mounting criticism over the billions of dollars invested in refinery rehabilitation projects with limited success. The ongoing review has revealed “unexpected hurdles” in repair efforts, necessitating a fundamental reassessment of the company’s approach.
Strategic Partnerships on the Horizon
Rather than pursuing divestment, NNPCL is now exploring “more advanced technical partnerships” to complete the high-grade rehabilitation of its refineries. This approach suggests the company recognizes the need for external expertise while maintaining majority ownership and operational control.
The strategy reflects broader concerns within Nigeria’s energy sector about maintaining national control over critical infrastructure while accessing the technical capabilities and financial resources needed for successful modernization.
Workforce and Stakeholder Response
The announcement appears to have resonated positively with NNPCL’s workforce, with employee feedback described as “reassuring,” “transformational,” and “sustainable.” The town hall format allowed for direct engagement between leadership and staff, with executive vice presidents from various divisions presenting progress reports across the company’s upstream, downstream, finance, and emerging energy portfolios.
Industry and Political Implications
The refinery debate has drawn significant attention from industry stakeholders, with petroleum marketers and trade associations weighing in on the strategic importance of maintaining domestic refining capacity. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PETROAN) has specifically urged the federal government against selling the refineries, highlighting the political sensitivity surrounding the assets.
The Port Harcourt refinery, along with its counterparts in Kaduna and Warri, represents decades of national investment and remains symbolically important to Nigeria’s energy independence aspirations, despite its operational challenges.
Looking Forward
With the strategic review expected to conclude by the end of 2025, NNPCL faces the critical task of demonstrating that its revised approach can succeed where previous efforts have fallen short. The company’s commitment to transparency and performance-driven management will be tested as it works to justify continued public investment in the troubled assets.
Ojulari’s closing remarks emphasized the company’s evolution toward becoming “a commercially driven, professionally managed national energy company, grounded in transparency, focused on performance, and unwavering in its responsibility to its number one stakeholder group, Nigerians.”
The reversal on the Port Harcourt refinery sale represents more than a change in business strategy—it signals Nigeria’s continued commitment to energy sovereignty in an increasingly complex global petroleum market. Whether this renewed commitment can translate into operational success remains the defining challenge for NNPCL’s leadership in the months ahead.
WHAT YOU SHOULD KNOW
Nigeria’s state oil company NNPCL has definitively abandoned plans to sell the Port Harcourt Refinery after internal reviews revealed that operating it before completing full rehabilitation was a costly mistake.
CEO Bashir Ojulari’s reversal from his earlier “all options are on the table” stance signals Nigeria’s determination to maintain control over critical energy infrastructure, despite years of failed refinery projects costing billions in public funds.
The company now seeks advanced technical partnerships to complete rehabilitation while retaining ownership—a strategy that will test whether Nigeria can finally make its refineries profitable after decades of operational failures.
