Nigeria’s state-owned refineries are set for a major restructuring as the Nigerian National Petroleum Company Limited pursues partnerships with international investors, including a major Chinese petrochemical firm, to turn around the chronically underperforming assets.
The move represents a significant policy shift for the 445,000-barrel-per-day refining capacity that has long failed to meet domestic demand despite billions spent on repairs. Meanwhile, the privately-owned Dangote Petroleum Refinery has emerged as a critical stopgap, helping stabilize Nigeria’s fuel supply while NNPC works to fix its own facilities.
NNPC Group Chief Executive Officer Bayo Ojulari revealed the strategy Wednesday at the Nigeria International Energy Summit 2026 in Abuja, outlining plans to sell equity stakes to experienced refinery operators rather than pursuing outright privatization or maintenance contracts.
“We are looking for an entity that runs refineries,” Ojulari explained during a fireside chat on securing Nigeria’s energy future. “We will probably look at options where you can sell down some of our equity, so that they have a skin in the game.”
The approach marks a departure from government-controlled operations that have produced decades of losses and operational failures across Nigeria’s four refineries in Port Harcourt, Warri, and Kaduna.
Ojulari confirmed advanced talks with potential investors, including a Chinese company operating one of China’s largest petrochemical plants. “I’m just coming from a meeting with one of the potential investors,” he said. “They are going to the refinery tomorrow to inspect.”
Years of Failure and Mounting Losses
The NNPC chief acknowledged the dire state of operations inherited when he took office, describing “extreme pressure” from Nigerians frustrated by failed rehabilitation efforts and wasted public funds.
“The first thing that became clear is that we were running at a monumental loss to Nigeria,” Ojulari said. Internal reviews revealed crude deliveries averaged only 50-55% utilization while costs continued climbing.
At Port Harcourt Refinery, the situation was particularly stark. “We were producing mid-grade products. When you compared the value of what came out to what went in, it was destruction of value,” he explained.
The decision to halt operations despite political pressure was necessary to prevent further hemorrhaging, Ojulari said. “If we continued, it would have been value destruction for the next 30 years.”
Dangote Provides Critical Relief
Ojulari offered strong praise for the 650,000-barrel-per-day Dangote Petroleum Refinery, crediting it with providing crucial breathing room while NNPC restructures.
“Thank God for Dangote Refinery. Whether you love Dangote, you hate him, say whatever you want to say, Nigerians should thank God for Dangote,” he said to applause, noting the facility’s Nigerian ownership was significant for energy security.
While acknowledging Dangote doesn’t meet full domestic demand, Ojulari said the refinery has substantially reduced supply chain vulnerability. NNPC also holds shares in the facility.
The comments signal a shift from earlier tensions toward collaboration. “We had a meeting with Alhaji Dangote, explained our institutional responsibilities, and we agreed on the pathway towards deeper collaboration,” Ojulari said.
New Model for Sustainability
The proposed equity-sharing model aims to establish self-financing operations with technically competent partners, ending reliance on contractors who “get paid and leave” while NNPC bears long-term operational burden.
“There’s no way NNPC, the structure we have, can run a profitable refinery,” Ojulari admitted. “We need to bring in additional capacity to complement what we have.”
The CEO also projected Nigeria could reach 1.8 million barrels per day oil production in 2026, though he called the 2025 budget benchmark of 2.06 million barrels per day overambitious.
Ojulari’s unusually candid assessment represents one of the clearest acknowledgments by an NNPC chief that continued state-dominated refinery operations are economically unsustainable, underscoring the company’s pivot toward commercial discipline and private-sector partnership.
READ ALSO:
- 26th MILO School Basketball Championship Brings Nigeria’s Best Young Talent to the National Finals
- 16-Year-Old Makes History as Nigeria’s Youngest Chartered Accountant
- Rivers Police Arrest Armed Robbery Suspect, Recover Five Firearms
- ProvidusUnity Bank launches after merger completion
- KieKie Named Chief Wahala Officer as inDrive Tackles Lagos Mobility Crisis
