Abuja | July 30, 2025
In a surprising policy reversal, the Nigerian National Petroleum Company Limited (NNPCL) has ruled out the sale of the Port Harcourt Refining Company, choosing instead to complete its long-delayed rehabilitation and retain full ownership. The announcement was made by the Group Chief Executive Officer, Mr. Bayo Ojulari, during a town hall meeting with staff at the NNPC Towers in Abuja.
Ojulari declared that “selling the refinery at this stage would result in value erosion,” describing earlier considerations of privatization or early operations before full rehabilitation as “ill-informed and sub-commercial.”
However, the announcement has stirred national outrage, as critics say it follows a familiar pattern of conflicting narratives, policy flip-flops, and strategic cover-ups that have characterized NNPCL’s handling of Nigeria’s refineries for decades.
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🔁 From Sale Talks to Sudden Reversal
Just weeks ago, Ojulari hinted during the 2025 OPEC Seminar in Vienna that “all options are on the table,” fuelling speculation that the government was preparing to divest from its long-defunct refineries. The sudden backpedal has raised suspicions about NNPCL’s internal direction and whether the company is truly committed to transparency.
Multiple industry sources and insiders suggest that contradictory memos and proposals have circulated within the company’s top management, pointing to an absence of a coherent strategy.
“This is a textbook cover-up,” said an oil industry analyst who requested anonymity. “They floated the idea of privatization to test public reaction, and when the backlash came, they reversed course. The truth is—they don't have a concrete plan.”
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💸 Trillions Spent, Nothing to Show
The Port Harcourt Refinery, Nigeria’s largest, has been mostly non-functional for the better part of two decades. Together with the Warri and Kaduna refineries, it has consumed over ₦6.5 trillion in turnaround maintenance and overheads, yet continues to deliver zero output.
A 2023 audit by the Nigeria Extractive Industries Transparency Initiative (NEITI) revealed that the three refineries have recorded cumulative losses of over ₦1.5 trillion between 2012 and 2022, with workers still drawing salaries and receiving budget allocations for non-existent operations.
Despite repeated assurances of progress—especially after a $1.5 billion rehabilitation contract was awarded to Italian firm Tecnimont in 2021—the refinery is yet to produce a single litre of fuel, as timelines have been consistently missed and shifted.
🛢 Public Distrust Growing
Ojulari’s statement at the town hall attempted to rekindle confidence, noting that the company’s revised strategy is focused on delivering value and completing a “high-grade” technical overhaul. Yet, the public remains deeply skeptical.
“How many times have we heard this same promise? 2012, 2015, 2019, 2021—it’s always the same story,” said a former NNPC board member. “They spend billions, organize ribbon-cuttings, but the refineries never come back to life. This is not policy—it’s performance theatre.”
⚙️ Wider Implications and Political Undertones
The timing of the announcement is also being viewed with suspicion. With fuel prices skyrocketing following President Bola Ahmed Tinubu’s removal of the fuel subsidy, the federal government is under intense pressure to show progress on domestic refining capacity. NNPCL’s declaration that it would retain the refinery is seen by many as a calculated public relations move, rather than a true operational strategy.
“Retaining the refinery only makes sense if it can actually work,” said an energy policy analyst. “Otherwise, we are simply protecting a symbol of failure.”
Meanwhile, the much-celebrated Dangote Refinery, which is privately owned and expected to refine 650,000 barrels per day, has started production trials and may soon dominate the local market—making NNPCL’s insistence on holding on to Port Harcourt look increasingly sentimental and economically irrational.
📝 Conclusion
What was initially hailed as a strategic recalibration by the NNPCL has quickly evolved into a public debate over credibility, accountability, and performance. The decision to retain the Port Harcourt Refinery, after hinting at its sale, highlights not just a change in direction, but a deeper problem at the heart of Nigeria’s oil sector: years of mismanagement, poor leadership, and unfulfilled promises.
Until Nigerians see actual fuel flowing from the refinery—and not just words at town hall meetings—NNPCL’s U-turn will remain, to many, just another chapter in a long saga of failed reforms and costly cover-ups.
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