The Nigerian National Petroleum Company Limited (NNPC) has admitted that years of neglect of the country’s refineries have continued to hinder their full rehabilitation, despite billions of dollars spent on turnaround maintenance and ongoing upgrade projects.
Group Chief Executive Officer of NNPC, Bayo Ojulari, disclosed this on Thursday during a meeting with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the NNPC Towers in Abuja.
He revealed that the oil firm’s reform drive has faced resistance from entrenched interests opposed to change, but stressed that the company remains focused on delivering a sustainable energy future for Nigeria.
Nigeria, Africa’s top crude oil producer, has struggled for years to refine enough petroleum products locally, relying heavily on imports despite owning four state refineries located in Port Harcourt, Warri, and Kaduna. Ojulari compared the state of the facilities to “an old car abandoned for years without maintenance.”
“A lot of money has been spent on these refineries, but it’s been very challenging to translate those funds into profitability,” Ojulari said.
“When you fix one component, another problem arises. The years of neglect created layers of damage that cannot be resolved overnight.”
The NNPC boss explained that technical and commercial reviews of the plants have been completed, with a new model being pursued to ensure efficiency.
According to him, the company has concluded a commercial review of the Port Harcourt refinery and determined that partnering with an experienced international refining company is the best path forward.
Ojulari revealed that the government has adopted an Incorporated Joint Venture (IJV) model to reposition the refineries.
Unlike the previous approach where political interference often derailed progress, the IJV framework allows private sector players to take equity stakes and drive operational decisions.
“Mr President does not pressure me to take shortcuts,” Ojulari noted.
“Our focus is to ensure whatever solution we adopt, the refineries must work sustainably and not relapse into the cycle of breakdowns.”
In the interim, NNPC is leveraging its stake in the newly operational Dangote Petroleum Refinery to secure additional supply for the domestic market.
This strategy, he said, would prevent product shortages during the transition period and reduce Nigeria’s reliance on imports.
Ojulari also admitted that the oil firm is facing “attacks” from vested interests unhappy with ongoing reforms.
He stressed that corruption, inefficiency, and sabotage have long plagued Nigeria’s oil sector, but vowed not to bow to pressure.
“We are under attack. Change is not easy, and driving transformation comes at a price,” he said.
“We will not budge to short-term pressures because our mandate is to build a system that works for Nigerians in the long term.”
He urged citizens to exercise patience as the reforms take root, assuring that the benefits will be evident once the refineries return to sustainable operation.
PENGASSAN President, Festus Osifo, commended NNPC for the progress made so far under Ojulari’s leadership.
He highlighted improvements in pipeline operations, reduced crude oil theft, and increased production levels since the new management assumed office.
“Today, our pipelines are working — from the Forcados line to the Trans-Niger Pipeline.
That has contributed to higher production and improved stability in the industry,” Osifo said.
He also called for greater private sector participation in refinery ownership, noting that political interference remains a major risk to long-term success.
“We have always asked if it is possible to allow well-experienced refiners to take equity in these facilities.
This would reduce government’s controlling stake and ensure the refineries operate as profitable businesses.”
Nigeria spends billions annually importing petrol and other refined products, despite producing about 1.4 million barrels of crude oil daily.
Experts estimate that the country loses over $10 billion yearly due to the collapse of its domestic refining system.
Previous administrations launched several turnaround maintenance projects, but most failed due to poor execution and lack of accountability.
Analysts believe that the current reforms — if sustained — could finally end the cycle of dependence on imports and save the country scarce foreign exchange.
Ojulari maintained that restoring Nigeria’s refining capacity is not just an economic necessity but also a matter of national security.
“Our responsibility is to guarantee energy security for over 200 million Nigerians. That is why we are pursuing reforms that will stand the test of time,” he said.
While the road to full refinery revival remains uncertain, stakeholders agree that the combination of private sector participation, strengthened governance, and strategic partnerships could finally deliver results after decades of failures.
For now, Nigerians wait to see if the promises of a reformed NNPC will translate into affordable fuel, reduced import dependence, and the revival of one of the nation’s most critical industries.