Nigerian state-owned oil firm NNPC Ltd is seeking technical equity partners to help revive three of its refineries which have remained idle despite significant investments, Chief Executive Bayo Ojulari announced on Thursday. The refineries, with a combined capacity of 445,000 barrels per day, could help Nigeria end its reliance on imported fuel and potentially become a net exporter when combined with the Dangote Petroleum Refinery.
“We are looking ahead with optimism to ensure our refineries operate effectively. We are dedicating significant time to a detailed review and are eager to implement our insights,” Ojulari said in a post on X. Former NNPC head Mele Kyari had also pursued external partnerships after securing $2.5 billion in contracts to rehabilitate the refineries. However, the facilities remain non-operational as the Nigerian government struggles to let go of non-performing assets.
The move comes as Nigeria implements a new 15 percent import duty on petrol and diesel, a policy aimed at protecting domestic refineries, stabilizing the downstream oil market, and promoting energy security. The Petroleum Products Retail Outlets Owners Association of Nigeria has called on NNPC to ensure the availability of crude oil to local refineries, emphasizing that steady crude supply is crucial for the policy’s success.
Dr. Billy Harry, National President of PETROAN, commended President Bola Tinubu for approving the import duty, noting that it aims to boost local refining capacity, improve price stability, enhance energy security, and create more job opportunities. However, he warned regulatory agencies to be on alert against monopoly, stating that if local refineries are not properly regulated, it could lead to market harm. Harry has urged NNPC to complete partnership agreements soon and start production at Nigeria’s refineries before December to avert fuel scarcity or price hikes during the holiday season.
Source: businessday.ng via Reuters, orientalnewsng.com