ABUJA — The Nigerian National Petroleum Company Limited (NNPCL) has acknowledged that its earlier decision to begin operations at the Port Harcourt Refinery before completing its full rehabilitation was ill-advised and financially unwise.
Group Chief Executive Officer of NNPCL, Bayo Ojulari, made this known during a company-wide town hall meeting held at the NNPC Towers in Abuja on Tuesday. He stated that a technical and financial review had revealed the premature restart of the 210,000 barrels per day facility was “sub-commercial.”
In April 2021, the Federal Government awarded a $1.5 billion contract to Italian firm Maire Tecnimont to refurbish the refinery. By December 2023, NNPCL, under the leadership of then GCEO Mele Kyari, had declared the plant 88% complete, with full operation anticipated soon after.
However, in May 2025—just months after announcing the start of product trucking—the refinery was abruptly shut down for further maintenance.
Ojulari’s latest comments mark a sharp departure from earlier optimism, and he categorically denied speculations that the Port Harcourt plant was being considered for sale, particularly to Dangote Group. He clarified that earlier remarks he made about “all options being on the table” were misinterpreted.
“Selling is highly unlikely as it would lead to further value erosion,” a statement from NNPC read. “The earlier decision to operate the Port Harcourt refinery, before full completion of its rehabilitation, was ill-informed.”
The statement also dismissed ongoing rumours of a sale, highlighting instead the company’s renewed commitment to completing a “high-grade” rehabilitation of the Port Harcourt, Warri, and Kaduna refineries through advanced technical partnerships.
NNPC staff reportedly welcomed the decision with applause, with Ojulari’s remarks said to have reinvigorated confidence in the company’s leadership direction.
The town hall featured progress reports from key departments—Upstream, Downstream, Gas, Power, and Finance—highlighting milestones and acknowledging past missteps.
Dangote, Obasanjo Question Viability
Ojulari’s admission comes against the backdrop of growing skepticism over Nigeria’s state-owned refineries. Aliko Dangote, Africa’s richest man and owner of the newly commissioned Dangote Refinery, has voiced doubts that any of the government-owned refineries will ever function properly despite massive investments.
According to Dangote, his decision to build a private refinery stemmed from the government’s refusal to sell the refineries to capable investors. He noted that despite enormous spending, the plants remain unreliable.
Former President Olusegun Obasanjo also echoed this sentiment, stating earlier this year that more than $2 billion had already been squandered on failed rehabilitation attempts. Obasanjo recalled how his administration sold the refineries for $750 million before the deal was reversed by his successor, the late President Umaru Yar’Adua.
He warned that the refineries may eventually be sold as scrap for as low as $200 million, describing the continuous spending as a product of entrenched corruption within the NNPC.
Billions Spent, No Output
Since 2000, several turnaround maintenance (TAM) contracts and light rehabilitation works have failed to yield lasting results. Between 2004 and 2023, the House of Representatives estimated that Nigeria spent over ₦11.3 trillion on the rehabilitation of its refineries. Additional costs were recorded in foreign currencies—$593 million, €4.9 billion, and £3.5 billion.
Analysts estimate that at least $18 billion has been spent on Nigeria’s refineries in the last two decades, with little to show for it.
Despite promises of reform, the state of Nigeria’s refining capacity remains a source of national concern, particularly amid ongoing petrol subsidy debates and rising fuel prices.
The latest developments underscore mounting pressure on NNPCL and the Federal Government to either deliver functional refineries or take decisive action to end the cycle of expenditure without performance.
