New Refinery Partnership Strategy: NNPC Sets June 2026 Deadline for Refinery Partners
The Nigerian National Petroleum Company Limited has unveiled a new deadline of June 2026 for concluding the selection of technical partners to revive the country’s long-struggling state-owned refineries.
The revised target signals a major shift in strategy aimed at restoring operational efficiency after years of costly rehabilitation efforts that have failed to return the facilities to sustainable production.
The Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, announced the new schedule on Monday during a media briefing in Abuja.
The session also highlighted the company’s record-breaking Profit After Tax of N5.4tn for the 2024 financial year, the highest in its corporate history.
Ojulari explained that although rehabilitation works at the Port Harcourt, Warri, and Kaduna refineries are ongoing, the plants remain far below global refining benchmarks and therefore cannot compete against modern facilities, including the privately owned Dangote Refinery.
He attributed this structural weakness to years of underinvestment, outdated configurations, and the erosion of local technical capacity.
Long-Term Decline and Lost Competencies
The GCEO noted that Nigeria’s refining capacity has deteriorated significantly over the past two decades, and the country has “lost the capability over time” to operate large, complex refineries at global standards.
He pointed out that even the Dangote Refinery, widely celebrated as the most advanced in Africa, relies heavily on foreign specialists due to Nigeria’s shrinking technical manpower base.
According to him, NNPC now intends to partner only with private entities that currently own and operate functional refineries.
He emphasized that partnerships will be based strictly on verifiable experience and structured as commercial agreements rather than government-driven arrangements.
“Our intention is to partner with private entities that are already in the business of running real refineries, not those promising capability on paper,” he said.
“We are now a CAMA company; every collaboration we enter will be commercial, competitive, and based on proven track records.”
A Shift to Hybrid Refinery Designs
Ojulari disclosed that NNPC is considering redesigning the state-owned facilities into hybrid plants capable of producing fuels that meet international specifications.
If the original rehabilitation plans are executed without redesign, the refineries would still lag behind global standards and produce fuels of lower quality than those of the Dangote Refinery.
He cautioned that the current configuration of the plants makes them commercially uncompetitive, adding that hybridisation is essential to ensure that refined products can compete in both domestic and export markets.
“If we go ahead with the original plan, the products will fall two steps below global specifications.
So we intend to redesign the plants into hybrid systems to ensure that the output meets international quality,” he said.
Ojulari stated that NNPC expects to have a fully defined roadmap — including redesigned engineering plans, partnership agreements, and new contract structures — by mid-2026.
Firm completion dates will only be announced once those steps are completed.
Billions Spent, Little Progress
Nigeria’s state-owned refineries, with a combined installed capacity of 445,000 barrels per day, have delivered minimal to zero output in more than a decade despite repeated allocations running into trillions of naira.
Since the early 2000s, the Federal Government has spent an estimated N18tn on turnaround maintenance and rehabilitation projects.
The Port Harcourt refinery is currently undergoing a $1.5bn revamp, the Warri refinery is being rehabilitated in partnership with Daewoo Engineering, while the Kaduna refinery — considered the most technically outdated — requires comprehensive redesigns and new processing configurations.
The rise of the 650,000bpd Dangote Refinery, which produces Euro-V grade fuels, has further exposed the technical and structural deficiencies of the public refineries.
Boosting Crude Oil Production
Beyond refining, NNPC is targeting a gradual recovery in crude oil output.
According to Ojulari, Nigeria is working toward producing 1.7 million barrels per day by the end of this year, ahead of an expected rise to 1.8mbpd next year.
The longer-term target is two million barrels per day by 2027.
He attributed the positive trajectory to improved security in oil-producing regions, better joint venture financing, and renewed investments in upstream operations.
“We are confident in meeting the target because we are taking deliberate and necessary steps to ensure production stability,” he said.
Commercial Orientation Under the PIA
Ojulari repeatedly stressed that NNPC is no longer a government parastatal but a limited liability company operating under the Companies and Allied Matters Act.
He noted that the Petroleum Industry Act created the framework for NNPC to pursue commercial agreements and build partnerships with greater autonomy.
“We must correct a misconception. NNPC is now largely a private company, although we remain accountable to the nation under the PIA. Our operations are commercial, and we enter agreements based on business value,” he said.
He added that NNPC’s strong financial outlook — including the N5.4tn profit reported for the 2024 fiscal year — is a reflection of improved operational fundamentals rather than currency gains or price effects.
Reinforcing Partnerships and Workforce Capability
The GCEO emphasized that building trusted partnerships and strengthening the skills of NNPC’s workforce remain essential to the company’s long-term strategy.
He said partners serve as ambassadors for the company, making their satisfaction crucial for attracting future investment.
Ojulari praised the over 12,000 direct and indirect staff of NNPC for contributing to the company’s turnaround, noting that the organisation is investing heavily in new technical competencies to adapt to advances in global energy technology.
“It is our people who drive our progress. We are investing in training, tools, and autonomy to unlock their full potential as we chart a new path for the company,” he said.
