This new development was disclosed by the NNPC’s chief, Bayo Ojulari, who also relayed that the group has established a plan to invite refinery operators with proven experience rather than contractors.
“I’m just coming from a meeting with one of the potential investors,” Ojulari said, without giving a name.
“They are going to the refinery tomorrow to inspect. It’s a Chinese company that has one of the biggest petrochemical plants in China.”
The NNPC head stated that operations in the refineries had been put on hold to give time to evaluate potential restoration solutions.
This coincided with the opening of the Dangote Refinery, which provided “breathing space” for the supply of domestic petroleum, as seen on Reuters.
According to him, NNPC would give partners a share of its equity rather than selling the refineries so that the facilities could finance themselves.
Selling them is now “one of the options” under consideration, Olu Verheijen stated.
Debacle with Nigeria’s state-owned oil refineries
For the past two years, the energy group has unsuccessfully attempted to fully reactivate three of its primary oil refineries in Warri, Kaduna, and Port Harcourt.
These endeavors to restore the facilities to operational status have resulted in both public controversy and shifts in strategic direction.
The government initially sought to rehabilitate these refineries, primarily in response to the commissioning of Dangote’s 650,000-barrel-per-day oil refinery; however, this effort proved unsuccessful, necessitating an exploration of potential public-private partnerships.
The company’s three refineries have a combined processing capacity of 445,000 barrels per day but have remained idle for decades, forcing the country to rely almost entirely on imported fuel, and much more recently, on the Dangote refinery.
This was despite heavy investments to modernize the three oil refineries.
Nigeria’s oil refinery scandal
Several NNPCL executives, including former GCEO Mele Kyari, have since then been monitored very closely.
The agency requested that NNPCL furnish certified copies of the listed officers’ emoluments and allowances, including retirees.
Theyalso requested confirmation of the names of 13 former top officials, including Abubakar Yar’Adua, Isiaka Abdulrazak, Umar Ajiya, Dikko Ahmed, Ademoye Jelili, Mustapha Sugungun, Kayode Adetokunbo, Efiok Akpan, Babatunde Bakare, Jimoh Olasunkanmi, Bello Kankaya, and Desmond Inyama.
Nigeria’s engagement with Chinese collaborators underscores the necessity of addressing its persistent refinery challenges as the nation seeks to achieve enhanced self-sufficiency in fuel.
While the Dangote Refinery has alleviated immediate supply constraints, the future of Nigeria’s state-owned refineries remains uncertain, with options ranging from equity partnerships to outright divestment remaining on the table.
