AfriPulse
November 30, (THEWILL) — The Nigerian National Petroleum Company Limited (NNPCL) is shopping for ‘partners’ to revive its moribund refineries that have lay comatose for over a decade. This is coming on the heels of the humongous resources invested in fixing the facilities without results, amid experts’ advice that the plants have outlived their usefulness.
After many years of hide-and-seek, the national oil company seems to have come to terms that the old story will no longer fly. Before now, it was unending promises and unrealised targets that became the sing-song of the immediate past Group Chief Executive Officer of NNPCL, Mele Kyari, and the cliché in government cycles.
To this end, the NNPCL has announced a fresh target of June 2026 to finalise the selection of technical partners for the country’s state-owned refineries, following years of failed rehabilitation efforts and a sharp decline in refining expertise.
The Group Chief Executive Officer of NNPCL, Bayo Ojulari, disclosed this during a question-and-answer session at a press briefing in Abuja on Monday, November 24, 2025, where the company announced a Profit After Tax of N5.4 trillion for the 2024 financial year, the strongest in its corporate history.
Ojulari said Nigeria’s refineries, the Port Harcourt, Warri, and Kaduna plants, despite ongoing rehabilitation, remain “well below international standards,” making their products commercially uncompetitive, especially compared to the privately owned Dangote Refinery.
He, however, explained that the current management is seeking competent private partners with proven refinery management experience to support the revival of Nigeria’s state-owned refineries.
Citing the Dangote Refinery as an example of how technical capacity has shifted abroad, he noted that many of the experts currently running such facilities are foreign because Nigeria has “lost capability over time.”
“So, what we are looking at is some partnership with a private entity, just like you said, but private entities that have existing refineries that they are running and operating.
Previous outings
Previously, NNPCL had in August 2024, announced plans to concession the facilities, having committed enormous sums of taxpayers’ money in fixing the plants, the announcement was a huge surprise to Nigerians.
In a circular on its website, the national oil company said, “The Nigerian National Petroleum Company Limited (NNPC Ltd) is seeking to engage reputable and credible Operations & Maintenance (O&M) companies to operate and maintain two of its refineries, Warri Refining and Petrochemical Company (WRPC) and Kaduna Refining and Petrochemical Company (KRPC), to ensure reliability and sustainability to meet the nation’s fuel supply and energy security obligations.”
However, oil and gas experts noted that though the arrangement was still unclear as to what the role of NNPCL would be when it transfers the operation and maintenance of the refineries to another party, the continued operation of the refineries by NNPCL should stop.
They lamented the many years that the refineries had been dormant, and observed that a large portion of the plant would have become obsolete as the manufacturers of those plants would no longer be in existence, adding that the facilities ought to have been sold off.
“The ideal situation would be to sell off the refineries to private investors. If NNPCL still wants to be involved, they should have equity because it has been proved that NNPCL cannot operate the refineries. They should not be the operator.
“If Dangote had acquired those refineries, we would have gone far in resolving the lingering energy challenges that now confront the nation in terms of producing what we require as a country. These refineries should be sold out,” said an oil and gas expert, Nnaemeka Obiaraeri.
Coming after many assurances by the NNPCL management to fix and deliver the Port Harcourt Refinery, including the ones located in Warri and Kaduna, and having committed enormous sums of taxpayers’ money in fixing the plants, the move was considered a huge surprise to most Nigerians. The proposed concessioning yielded no result.
In a dramatic turn, the NNPCL thereafter announced that the 150,000 barrels per day (bpd) Port Harcourt Refinery and the Kaduna Refinery were undergoing a comprehensive overhaul aimed at meeting world-class standards.
This was disclosed in a statement by the then Chief Corporate Communications Officer of NNPC Ltd., Olufemi Soneye, in response to comments from former President Olusegun Obasanjo regarding the said refineries’ rehabilitation.
According to NNPCL, the rehabilitation of the 60,000 bpd Port Harcourt and Warri refineries exceeds traditional Turnaround Maintenance (TAM), representing a full revamp to meet global standards. Sonoye reaffirmed NNPCL’s commitment to restoring and maintaining the refineries to global standards for sustainable operations.
The nation’s oil company later announced that the Port Harcourt Refinery had resumed production in fulfilment of the NNPCL’s promise to the nation.
A former Managing Director of Port Harcourt and Kaduna Refineries at different times, Engr Alex Ogedegbe, explained that the so-called fulfilled promise was a hoax.
“From the analysis of the information published so far it does not appear that the refinery can start any production in the foreseeable future,” Ogedegbe disclosed in a statement, adding, “It is also noteworthy that the main contractor, TECHNIMONT did not promise any mechanical completion or production start-up dates.”
In May 2025, the Port Harcourt refinery was shut down for a “planned maintenance” a few months after it had been reopened following a major rehabilitation. The plant has not resumed production.
The search for ‘partners’
Despite billions of dollars totalling around N18 trillion committed to Turnaround Maintenance since the early 2000s, none of the refineries has returned to steady production. The Port Harcourt plant has been undergoing a $1.5bn rehabilitation, Warri is being revamped under a joint programme with Daewoo Engineering, while Kaduna refinery requires an extensive overhaul and new configurations to handle more complex crude.
The emergence of Dangote Refinery, now producing Euro-V standard fuels, has further exposed the outdated configuration and technological gap of the state-owned plants.
Ojulari explained at the latest briefing in Abuja that NNPCL may redesign its refineries into hybrid plants to meet global product specifications and compete internationally. However, firm completion dates will only be announced after redesign and hybridisation plans are finalised. Ojulari said NNPCL expects a clearer timetable by mid-2026.
He further warned that if the original rehabilitation plan for the state-owned refineries is followed, the output would still fall “two steps below current international specifications.”
What happens if the “partner” with the right technical expertise does not emerge after June 2026? Industry experts ask. Obiaraeri had insisted that the facilities should be sold off or floated on the Nigerian Exchange where the government will cease to be the major stakeholder.
Ojulari had revealed that the state-owned oil company is striving to increase its ownership in the Dangote Petroleum Refinery from the current 7.2 percent to 20 percent.
The Nigerian government (through NNPC Ltd) initially pledged to acquire a 20 percent stake in the $20 billion Dangote Refinery, which is the largest oil refining facility in Africa. Nevertheless, due to financial limitations, the company restricted its investment to the amount already disbursed, leading to a diminished stake of 7.2 percent.
The GCEO of NNPCL also confirmed that the oil company is being prepared for listing on the Nigerian Exchange.
Dawn of a new era
These policy changes signify a decisive shift away from the entrenched culture of waste, inefficiency, and corruption that has characterized the operations of the stagnant refineries. Nevertheless, analysts express skepticism regarding the government’s commitment to follow through this time, given past policy inconsistencies that indicated a lack of political resolve to reform the colossal national oil company, which has maintained four non-operational refineries for nearly thirty years.
Anti-change resistance
Ojulari raised concerns four months ago about threats to his life and those of his management team. He made this statement on Thursday, August 28, 2025, in Abuja while welcoming a delegation from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), led by its president, Festus Osifo.
He indicated that his priorities upon taking office included conducting a swift review of the refineries. This assessment revealed that the company was incurring losses ranging from N300 million to N500 million monthly due to refinery operations, with Port Harcourt identified as a significant source of the financial drain.
Ojulari informed his perplexed audience that approximately 950,000 barrels of crude were delivered to the facility as cargo; however, an analysis of the inputs and outputs indicated that less than 40 percent of what was received was being processed efficiently.
This scenario was typical within NNPCL during the tenure of the previous GCEO, Mallam Mele Kyari. “Therefore, our initial response was to halt the losses and seek a method to transform the refinery into a sustainably profitable enterprise, while also providing a means of sustainable employment.”
For Ojulari, “There is no reason for us to feign ignorance. Thus, there was no adverse political pressure on NNPC to persist in operating at a loss.” He stated that his sole “offense” was implementing reforms in the oil and gas sector, in accordance with the directive given to him by President Bola Tinubu to rejuvenate the nation’s ailing refineries.
NASS Angle
On Thursday, October 9, 2025, the House of Representatives decided to investigate the over $18 billion reportedly spent on the rehabilitation of Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna over the past two decades without achieving notable results.
This resolution came after the adoption of a motion presented during plenary by Hon. Sesi Oluwaseun Whingan concerning the non-functionality of state-owned refineries.
In his motion, Whingan voiced his concerns about the persistent ineffectiveness of the refineries, despite numerous turnaround maintenance initiatives and repeated government assurances. He emphasized that the facilities have remained dormant even after considerable funding and multiple promises of rehabilitation.
The lawmaker underscored that the recent admission by the Group Chief Executive Officer of NNPCL, Engr. Bayo Ojulari, regarding the refineries’ inactivity despite significant investments, raises additional concerns about fiscal responsibility and transparency in the management of national assets.
“The ongoing non-functionality of these refineries, despite regular budget allocations and rehabilitation contracts, signifies a severe misappropriation of public funds and a breach of public trust,” lamented Whingan.
Author Profile
Sam Diala, THEWILL
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
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