Nigeria’s long-troubled state-owned refineries may be heading for a fresh start as the Nigerian National Petroleum Company Limited (NNPC) opens discussions with foreign investors, including a major Chinese petrochemical firm, in a bid to revive assets that have drained public funds for decades. The move marks a strategic reset aimed at restoring commercial viability to Nigeria’s four refineries with a combined capacity of 445,000 barrels per day.
The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, disclosed the plan during a fireside chat at the Nigeria International Energy Summit 2026 in Abuja, where he revealed that the company is prepared to sell down equity to technically competent refinery operators. Ojulari stressed that NNPC is not seeking contractors or operations managers but long-term partners with proven refinery expertise and financial stake, allowing them to lead operations while rebuilding local capacity.
Ojulari admitted that Nigeria’s refineries—located in Port Harcourt, Warri, and Kaduna—have operated at heavy losses despite billions of dollars spent on turnaround maintenance. According to him, internal reviews showed poor utilisation rates, rising contractor costs, and consistent value destruction, forcing NNPC to halt operations despite political pressure. “We were just wasting money,” he said, describing the existing financing and operational model as unsustainable.
Amid the struggles of state-owned facilities, Ojulari praised the Dangote Petroleum Refinery for stabilising Nigeria’s fuel supply and easing pressure on NNPC. He said the 650,000-barrel-per-day refinery has provided critical breathing space for the country, reducing supply chain vulnerability and improving energy security. While acknowledging that Dangote Refinery does not yet meet total domestic demand, Ojulari described its local ownership and operational success as a national advantage.
Signalling a shift from rivalry to cooperation, Ojulari revealed that NNPC is now working closely with Dangote Group under the framework of the Petroleum Industry Act to maximise value for Nigerians. He also expressed cautious optimism about oil production, projecting output of 1.8 million barrels per day in 2026, while warning that higher targets remain unrealistic. His remarks underline a decisive pivot toward commercial discipline, private-sector collaboration, and a pragmatic rethink of Nigeria’s refining future.
source: punch