Nigerian President Olusegun Obasanjo has set up a committee on a plan to sell off its 51 percent shares in its four oil refineries, most of which are underperforming, officials said Saturday.
The refineries, which have a total installed capacity of 450,000 barrels per day, are located in the northern city of Kaduna and the southern cities of Port Harcourt and Warri, an official statement said.
The committee will consider all major decisions necessary for expediting the privatisation of the two refineries in Port Harcourt which have a total installed capacity of 210,000 barrels per day, it said.
The Port Harcourt refineries are the first on the list of the four refineries to be sold off. They will be privatised before the end of this year.
Presidential adviser on petroleum and energy Edmund Daukoru is the chairman of the four-member steering committee, which also includes the managing director of giant state-run oil firm Nigerian National Petroleum Corporation, Funso Kupolokun.
The committee is expected to meet monthly to ensure the successful privatisation of the refineries.
The committee will also assume responsibility of the Port Harcourt Refinery company board on operational matters and all issues relating to its privatisation.
Obasanjo this week dissolved the board of the company and replaced it with a six-member interim technical team which will manage the firm until the completion of its privatisation this year, the statement said.
The privatisation of the refineries is part of a government plan to divest its holdings in some key government agencies in a move to enhance their efficiency and profitability.
Nigeria, Africa's largest oil producer, imports refined petroleum products due to corruption and underperformance of its four refineries. It has been doing so for more than a decade to meet local consumption.