Nigeria’s state-owned hydrocarbon giant, the Nigerian National Petroleum Company (NNPC) Limited, has decisively ruled out selling its four struggling crude oil refineries, opting instead for a new strategy of strategic partnerships to bring the plants back into full operation. After a seven-month comprehensive asset review, the new NNPC executive team concluded that maintaining ownership while handing over operations to private experts is the most viable path forward.
Under the new plan, NNPC will assume a minority yet controlling stake, while technically proficient partner companies will take on the management and day-to-day operations of the refineries. This model is a shift from previous government plans, which involved fully funding Turnaround Maintenance (TAM) before attempting to contract out management.
The company’s Executive Vice President (EVP) Downstream office has been actively scouting globally for financially strong and technically capable firms since the benchmarking study was finalised in September 2025. According to reports from the Africa Oil & Gas Report, negotiations are already advanced, with a shortlist of three potential investor-technical partners identified in early November 2025. Initial efforts are focused primarily on the two Port Harcourt refineries in the south-east, with plans to extend the model to the Warri Refinery in the mid-west and the Kaduna Refinery in the north if successful.
The decision to retain ownership is highly significant given the massive public funds already poured into the aged facilities. Nigeria’s Federal Executive Council approved approximately $3 billion between 2019 and mid-2023 for the phased rehabilitation of the Port Harcourt, Warri, and Kaduna plants. The refineries, commissioned between 1965 and 1989, have a total nameplate capacity of 445,000 barrels per stream day (BPSD) but have struggled with poor performance for over 15 years, despite hiring specialised contractors like Italy’s Marie Technimont and Korea’s Daewoo Construction.
A senior logistics manager within the industry cautioned that selling the refineries after such heavy investment would cause “a massive destruction of value” and public outrage. NNPC’s Group CEO, Bayo Ojulari, reaffirmed the commitment to the new approach on LinkedIn, stating: “We are filled with determination and look ahead with optimism to ensure our refineries operate effectively.”
The push to quickly revitalise the state refineries is critical to Nigeria’s energy security and its economic stability. The plants’ failure has forced the nation to rely almost entirely on costly imported refined petroleum products, draining scarce foreign exchange and making the country vulnerable to global oil price fluctuations.
Sources within NNPC acknowledged the competitive pressure from the newly commissioned Dangote Refinery, which boasts a capacity of 650,000 BPSD and produces at least 30 million litres of gasoline daily. While Dangote’s entry is transformative, NNPC’s decision to maintain its own assets aligns with requirements under the Petroleum Industry Act (PIA). This act positions the state oil firm as the supplier of last resort, meaning its operational refineries will act as a buffer to guarantee local supply and prevent sudden, severe fuel scarcity. By retaining a controlling, non-operating stake, NNPC aims to ensure that private sector efficiency is harnessed to protect national fuel security and reduce dependence on imports.
