The Nigerian National Petroleum Company Limited (NNPC Ltd.) has begun a comprehensive technical and commercial review of Nigeria’s three state-owned refineries located in Port Harcourt, Warri, and Kaduna to determine their operational and financial viability.
The exercise, according to the company, is part of a wider effort to reposition the refineries as modern, profit-driven facilities capable of meeting the country’s domestic fuel demand and operating at global standards.
In a statement shared on Wednesday through the verified X (formerly Twitter) handle of the Group Chief Executive Officer, Mr. Bayo Ojulari (@BayoOjulari), NNPC described the review as “the beginning of a new era in Nigeria’s refining sector.”
“We are filled with determination and looking ahead with optimism to ensure our refineries operate effectively,” Ojulari said. “Our drive is fuelled by the understanding that the prosperity of Nigerian states and the success of our nation will always take precedence over individual interests.”
Ojulari explained that the company is currently in the technical and commercial review phase, which will assess the current state of all three refineries. The review aims to determine whether to high-grade the refineries — meaning to upgrade and modernize them — or to repurpose them for other industrial uses that ensure efficiency and profitability.
In simple terms, high-grading a refinery involves more than just fixing damaged parts. It means transforming outdated plants into modern, efficient facilities capable of producing high-quality fuel that meets international standards.
“We are in the phase of conducting a comprehensive assessment of all three refineries — to high-grade or repurpose them as needed for optimal performance and sustainability,” Ojulari said.
He added that this marks a major step forward in NNPC’s long-running refinery rehabilitation plan, which aims to make the company a commercially driven, transparent energy organization that serves Nigerians effectively.
As part of the review, NNPC is engaging both local and international experts to help guide key decisions on technology upgrades, operating models, and commercial strategies.
Ojulari said that the next step in the process will involve forming partnerships with Technical Equity Partners — globally recognised operators with proven experience managing large-scale refineries. These partners will help drive the rehabilitation and modernisation process to meet global benchmarks.
“The next phase is to advance technical partnerships and select Technical Equity Partners who have a track record of operating refineries to international standards,” he explained. “We will then complete the necessary agreements to begin implementation of either high-grade or repair works as required.”
According to NNPC, all partnership discussions are being guided by strict technical and commercial standards to ensure transparency and value for Nigerians.
The refinery rehabilitation plan, the company stated, is a central part of Nigeria’s National Energy Strategy, which focuses on energy security, asset optimisation, and compliance with the Petroleum Industry Act (PIA).
Under the PIA, NNPC is designated as the supplier of last resort for petroleum products in Nigeria, which makes the efficient operation of the refineries crucial to maintaining stable fuel supply and reducing dependence on imports.
NNPC noted that the ongoing assessment will also help align the refineries with environmental and operational standards, while improving profitability and transparency.
Nigeria’s refineries the Port Harcourt Refinery in Rivers State, Warri Refinery in Delta State, and Kaduna Refinery in Kaduna State have long struggled with inefficiency, ageing equipment, and poor maintenance.
Despite several government efforts and billions of dollars spent on turnaround maintenance over the years, the facilities have been unable to produce refined fuel at commercial scale for more than a decade.
The combined nameplate capacity of the three refineries is about 445,000 barrels per day, but none of them have consistently operated beyond minimal test runs in recent years.
This persistent failure has forced Nigeria — Africa’s largest oil producer — to rely heavily on imported petrol, diesel, and aviation fuel, which has strained the economy and contributed to recurring fuel shortages and subsidy costs.
Ojulari said the ongoing review signals a clear break from the past and reflects NNPC’s renewed commitment to transparency, efficiency, and accountability under its new corporate structure as a limited liability company.
“We are repositioning as a commercially driven, transparent energy company serving Nigerians,” he said. “This review marks the beginning of a transformation that will ensure our refineries contribute meaningfully to the nation’s economic growth.”
For now, Nigerians are watching closely to see if this latest initiative will finally bring results, after decades of unfulfilled promises to revive the country’s refineries.
