The Nigerian National Petroleum Company Limited (NNPC) has warned against efforts to reduce Nigeria’s state-owned refineries to scrap, insisting that any future rehabilitation must be backed by a clear path to profitability.
NNPC Group Chief Executive Officer, Bayo Ojulari, disclosed this during a media engagement in Abuja while presenting the company’s 2025 audited financial results and strategic outlook.
The warning comes as NNPC reviews a new approach to reviving the Port Harcourt, Warri and Kaduna refineries after years of expensive rehabilitation projects failed to deliver sustained commercial production.
Ojulari said NNPC had learnt important lessons from previous rehabilitation arrangements, particularly a model in which contractors were paid for repairs and operations without having a direct financial stake in the long-term performance of the facilities.
According to him, the company will no longer commit resources to refinery rehabilitation simply to restore the facilities to operation.
Instead, NNPC wants future partners to have a stake in ensuring that the refineries become commercially viable, self-sustaining and profitable.
“We’re not going to go ahead with rehabilitation without a pathway to profitability, Ojulari said, explaining that the company had also stopped using crude oil to fund arrangements that failed to generate positive commercial outcomes.
The shift is significant for Nigeria’s refining sector, where billions of naira have been spent over the years attempting to revive government-owned plants.
NNPC now says prospective technical partners must be prepared to participate in the performance of the refineries rather than simply execute rehabilitation contracts.
The company is already considering potential technical equity partnerships for the facilities.
Ojulari said prospective partners had carried out extensive technical due diligence, with more than 34 engineers involved in a three-month assessment of the refineries.
He said the objective is to determine how the plants can be returned not just to operation, but to a level where they can compete with modern refineries.
One concern identified during the assessment is that simply implementing some of the previous rehabilitation plans could leave the facilities technologically outdated within a few years.
NNPC is therefore considering a more comprehensive approach that could introduce newer technologies and improve the capacity and efficiency of the refineries.
The company has also been engaging prospective Chinese partners, although Ojulari stressed that no final agreement has been signed.
According to him, NNPC initially considered more than 50 possibilities before narrowing the field to about 20 and eventually identifying partners whose approach aligned with its strategy.
The prospective partners have also visited the facilities and conducted technical assessments before any commercial agreement is reached.
For DDM News, the development highlights the changing approach to Nigeria’s long-running refinery revival efforts.
Rather than continuing with a model where government bears most of the financial burden, NNPC is seeking partners that can contribute expertise and take responsibility for the commercial performance of the assets.
Ojulari, however, raised another concern: some interests may prefer to acquire the old refinery infrastructure as scrap instead of participating in efforts to restore the facilities.
He warned that such interests could oppose credible plans aimed at making the refineries commercially sustainable.
NNPC’s position is that the refineries should be assessed based on their potential to generate value rather than simply their current condition.
The Port Harcourt and Warri refineries are currently receiving particular attention under the new partnership model, while Kaduna is expected to be considered as the process develops.
The company’s broader strategy is also focused on ensuring that each of its business units has a clear route towards profitability.
Ojulari said businesses that are not profitable are being restructured, stressing that investments can take time to deliver returns but should ultimately have a visible path towards creating value.
The approach reflects a wider effort by NNPC to strengthen its finances, improve transparency and attract external capital.
For Nigeria, the success of the strategy could have implications beyond the three state-owned refineries.
A commercially sustainable refining system could strengthen domestic fuel production, reduce reliance on imported petroleum products and create additional opportunities across the energy value chain.
For now, NNPC says its priority is not simply to get the refineries running again, but to ensure that when they return, they can operate sustainably and compete in a changing energy market.
Source: The Punch, September 29, 2026; NNPC Limited.
