NNPC courts private investors to revive Nigeria’s idle refineries

Nigeria’s state-owned oil company, NNPC Ltd, is seeking new technical equity partners to help revive its long-dormant refineries, which have yet to resume operations despite years of heavy investment.

• Nigeria's state-owned NNPC Ltd is seeking technical equity partners to revive its three idle refineries.
• These facilities, located in Port Harcourt, Warri, and Kaduna, have a combined capacity of 445,000 barrels per day but remain non-operational.
• The initiative focuses on equity-based arrangements with partners to rehabilitate, manage, and operate the refineries.
• Previous efforts, including significant investments, have not led to functional refineries due to challenges such as mismanagement and policy inconsistencies.

Nigeria’s state-owned oil company, NNPC Ltd, is seeking new technical equity partners to help revive its long-dormant refineries, which have yet to resume operations despite years of heavy investment.

The company’s three refineries, located in Port Harcourt, Warri, and Kaduna, have a combined processing capacity of 445,000 barrels per day but have remained idle for years, forcing Africa’s biggest oil producer to rely almost entirely on imported fuel.

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NNPC’s Group Chief Executive Officer, Bayo Ojulari, said on Thursday that the company is now “looking ahead with optimism” as it undertakes a comprehensive strategy to bring the facilities back online.

"We are dedicating significant time to a detailed review and are eager to implement our insights," NNPC CEO Bayo Ojulari said in a post on X.

Fueling recovery through investment

The plan marks a renewed push by NNPC to attract private sector expertise and investment into its refining segment, a move seen as crucial to Nigeria’s long-term energy security.

The partnerships would involve companies with proven technical and operational capacity to jointly manage, rehabilitate, and operate the refineries under equity-based arrangements.

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The latest drive follows similar efforts by former NNPC chief Mele Kyari, who had previously secured $2.5 billion in contracts for refinery rehabilitation, including a $1.4 billion deal for the Port Harcourt Refinery.

However, despite those commitments, the facilities remain non-operational, weighed down by years of mismanagement, underinvestment, and policy inconsistencies.

Once operational, the refineries, together with the privately owned Dangote Petroleum Refinery, will ultimately transform Nigeria from a fuel importer to a net exporter, saving billions in foreign exchange annually and stabilising domestic supply.