NNPC Seeks Investors to Revive State Refineries While Dangote Plant Provides Relief

Nigeria’s state-owned refineries, long plagued by inefficiency and underperformance, may be poised for a strategic reset as the Nigerian National Petroleum Company Limited (NNPC) opens talks with foreign and local investors to inject technical expertise and equity into the assets.

Speaking in Abuja during the Nigeria International Energy Summit 2026, NNPC Group CEO Bayo Ojulari outlined a board-approved plan to stabilise and modernise the country’s four state refineries in Port Harcourt, Warri, and Kaduna. Rather than selling the plants outright, Ojulari explained that the company intends to bring in partners with proven operational experience to buy a portion of NNPC’s shares. These partners would manage operations directly while NNPC retains a role to rebuild its skills and oversight capacity.

“The goal is a self-sustaining, commercially viable refinery system. NNPC alone cannot run profitable refineries under the current structure. We need partners with the operational capability and skin in the game,” Ojulari said.

The CEO acknowledged decades of public frustration over the refineries’ underperformance, which has forced Nigeria to rely heavily on imported fuel despite being Africa’s largest oil producer. NNPC’s internal review revealed utilisation rates averaging only 50–55 per cent and recurring value destruction at the plants, such as the Port Harcourt facility producing mid-grade outputs worth less than the crude input.

Ojulari praised the Dangote Petroleum Refinery, which has provided crucial domestic fuel supply stability. “Whether you support him or not, Dangote Refinery is a Nigerian-owned asset that works. It provides breathing space for NNPC and safeguards national energy security,” he said.

The discussions with prospective investors, including a major Chinese petrochemical company, signal NNPC’s shift toward commercial discipline and collaboration with private operators, prioritising sustainable operations over political expediency.

Ojulari also projected Nigeria’s oil output could reach 1.8 million barrels per day in 2026, cautioning that the 2025 budget target of 2.06 million barrels per day was overambitious.