NNPC targets overseas companions as Dangote gives lifeline

Nigeria’s long-troubled 445,000-barrel-per-day state-owned refineries could also be headed for a contemporary begin, because the Nigerian Nationwide Petroleum Firm Restricted has opened discussions with a Chinese language petrochemical agency and different potential traders as a part of a sweeping reset aimed toward reviving the ailing property.

However whereas state refineries battle, the Dangote Petroleum Refinery, in response to NNPC, has offered an important lifeline, giving NNPC respiratory house to stabilise home gas provide.

The reset of NNPC refineries is anticipated to contain the sale of fairness within the vegetation to technically competent operators with confirmed capability to run and maintain refinery operations, marking a departure from government-dominated management.

The Group Chief Government Officer, Bayo Ojulari, disclosed the technique on Wednesday in Abuja throughout a fireplace chat titled “Securing Nigeria’s Vitality Future” on the Nigeria Worldwide Vitality Summit 2026. He supplied uncommon perception into the business and operational realities confronting NNPC’s refining property and outlined a board-approved technique to finish a long time of losses.

Ojulari clarified that NNPC will not be planning an outright sale however is ready to relinquish as a lot fairness as essential to safe a sustainable working mannequin.

“So the present NNPC technique, as authorised by our board, is to concentrate on getting companions which have a monitor file of working refineries. We aren’t on the lookout for contractors. We aren’t on the lookout for Operations and Upkeep,” he mentioned.

“We’re on the lookout for an entity that runs refineries. We’re trying ahead to them shopping for a few of our shares. So whenever you say promote, we won’t say we’re promoting the refineries.

We’ll in all probability have a look at choices the place you’ll be able to promote down a few of our fairness, in order that they’ve a pores and skin within the sport. And with that, with the operational capability, we are going to then cooperate with them. They lead the operation, after which we use that to develop, rebuild our personal abilities and assist.”

The CEO careworn that the overriding purpose is to determine a self-financing, sustainable refinery system. “For it to self-finance itself, for it to run like a enterprise. We all know that in every single place on the earth, refinery margins aren’t very excessive. So there’s no approach NNPC, the construction we’ve got, can run a worthwhile refinery. We have to herald further capability to enhance what we’ve got to run these refineries,” Ojulari mentioned.

He confirmed that discussions with potential traders have superior, together with a Chinese language firm that owns one of many largest petrochemical vegetation in China. “By the way, I’m simply coming from a gathering with one of many potential traders, the place we’re their vegetation. They’re shifting; they will the refinery tomorrow to examine. And we even have a number of different firms as effectively,” he revealed.

Nigeria’s 4 state-owned refineries—Port Harcourt (two vegetation), Warri, and Kaduna—have lengthy operated far beneath capability regardless of repeated rehabilitation efforts costing billions of {dollars}. Between 2015 and 2023, successive administrations authorised a number of turnaround contracts, but home refining output remained negligible, forcing Nigeria to rely closely on gas imports.

Ojulari acknowledged that the refineries grew to become a stress level upon his assumption of workplace, citing public anger over failed upkeep and wasted funds.

“Nigerians have been offended. Some huge cash had been spent, and expectations have been very excessive. We have been underneath excessive stress,” he mentioned, noting that an inside overview revealed deep structural inefficiencies. “The very first thing that grew to become clear is that we have been working at a monumental loss to Nigeria. We have been simply losing cash.”

He defined that month-to-month crude deliveries to the refineries solely averaged 50 to 55 per cent utilisation, whereas working and contractor prices continued to rise. “At Port Harcourt Refinery, for instance, we have been producing mid-grade merchandise. Once you in contrast the worth of what got here out to what went in, it was destruction of worth,” Ojulari mentioned.

The CEO famous that the choice to halt refinery operations, regardless of political stress, was obligatory to stop additional losses. “There have been political pressures to maintain them working, but when we continued, it could have been worth destruction for the subsequent 30 years,” he mentioned.

Ojulari additionally cited long-standing points with the financing mannequin. “The financiers receives a commission. The EPC contractors receives a commission and depart. Then, NNPC is left to run the refinery for many years with out the capability. O&M contracts solely made it worse. Everybody was taking cash from the system with none pores and skin within the sport,” he defined.

Amid the challenges confronted by state-owned refineries, Ojulari praised the Dangote Petroleum Refinery for its stabilising position. “Thank God for Dangote Refinery. Thank God. Whether or not you’re keen on Dangote, you hate him, say no matter you wish to say, Nigerians ought to thank God for Dangote,” he mentioned, drawing applause from the viewers.

The CEO famous that the 650,000-barrel-per-day refinery’s native possession was important for nationwide vitality safety. “Thank God he’s a Nigerian. He’s not somebody from one other continent or one other planet. Regardless of the whole lot, that gave us a possibility as a result of we’ve got a refinery that’s working,” Ojulari mentioned.

Whereas acknowledging that Dangote Refinery doesn’t meet full home gas demand, Ojulari mentioned its operations considerably diminished vulnerability within the provide chain. “Sure, it might not meet our full wants, but it surely offers us a respiratory house. And fortuitously, we’re shareholders in that refinery as effectively,” he added.

Ojulari’s remarks sign a practical shift in NNPC’s strategy to Dangote Group, shifting from confrontation to collaboration. “We mentioned, what’s the hurry? We’ve got a refinery that’s working. It’s not owned by NNPC, but it surely’s a Nigerian refinery, inbuilt Nigeria, working in Nigeria,” he mentioned.

He revealed that NNPC has engaged instantly with Dangote to chart a framework for cooperation aligned with the Petroleum Trade Act. “Our technique is to collaborate with the Dangote Refinery and maximise the worth delivered to Nigerians. We had a gathering with Alhaji Dangote, defined our institutional obligations, and we agreed on the pathway in direction of deeper collaboration whereas sustaining our position as NNPC,” Ojulari mentioned.

The CEO additionally expressed optimism for oil manufacturing, projecting Nigeria might obtain 1.8 million barrels per day in 2026, though he described the 2025 finances benchmark of two.06 million barrels per day as overambitious.

Ojulari’s candid feedback mark one of many clearest acknowledgements by an NNPC chief government that continued state refinery operations, underneath present situations, are economically unjustifiable, underscoring the corporate’s pivot towards business self-discipline and collaboration with non-public operators.