KEY POINTS
- Tinubu pledges to rehabilitate Nigeria’s four dormant state-owned refineries.
- NNPC has signed agreements with two Chinese firms to support the facilities’ revival.
- FG wants greater domestic refining to reduce imports, create jobs and expand petroleum exports across Africa.
President Bola Tinubu has reaffirmed his administration’s commitment to rehabilitating Nigeria’s four state-owned refineries, saying the facilities will not be allowed to become stranded investments as the country expands its domestic refining capacity.
Tinubu, represented by the Permanent Secretary of the Federal Ministry of Petroleum Resources, Patience Oyekunle, made the pledge on Monday at the 20th OTL Africa Downstream Energy Week in Lagos.
The president said the government was adopting a more commercially sustainable approach to reviving the refineries, supported by technical assessments, stronger partnerships and improved operational discipline.
The facilities in Port Harcourt, Warri and Kaduna, managed by the Nigerian National Petroleum Company Limited (NNPC), have remained largely inactive despite billions of naira spent on turnaround maintenance over the years.
The latest commitment comes as the government seeks to reduce Nigeria’s dependence on imported petroleum products and increase the value generated from its crude oil and gas resources.
FG adopts new approach to refinery rehabilitation
Tinubu said the government was determined to ensure that the national refineries remained viable investments rather than deteriorating assets.
He said the rehabilitation process would involve more rigorous technical assessments and stronger partnerships, alongside improvements in operational management and commercial sustainability.
The current NNPC leadership has signed memoranda of understanding with two Chinese companies for the rehabilitation of the facilities.
However, the president’s statement did not provide a specific timeline for completing the rehabilitation work or restoring the refineries to commercial operations.
Tinubu said the government’s broader objective was to ensure that Nigeria processed more of its crude oil locally, retained greater economic value within the country and became a reliable supplier of energy to other African nations.
Government targets reduced fuel imports
The president said Nigeria was gradually transitioning from an industry dominated by import dependence and infrastructure constraints towards one driven by domestic refining, private investment, market efficiency and regional trade.
He attributed the shift partly to reforms introduced under the Petroleum Industry Act (PIA), which he said were designed to create a transparent, commercially viable and investment-friendly petroleum sector.
Tinubu argued that the country needed to move beyond exporting crude oil while importing a substantial share of the refined products required by its economy.
He said greater domestic refining would help retain more value within Nigeria, create employment opportunities and support investment in industries linked to the petroleum sector.
The government also wants petroleum resources to contribute more directly to manufacturing, petrochemicals, gas processing and other energy-intensive industries.
Dangote Refinery strengthens domestic capacity
Tinubu described the emergence of large-scale private refining as a significant development for Nigeria’s petroleum industry.
He cited the Dangote Petroleum Refinery, which he said had reached its stated nameplate capacity of 650,000 barrels per day.
According to the president, the refinery’s capacity strengthens Nigeria’s prospects of becoming a net exporter of refined petroleum products and supplying markets across Africa.
The government’s strategy combines private-sector refining with efforts to restore the state-owned facilities, potentially broadening the country’s refining base.
Tinubu also stressed that expanding refining capacity should be accompanied by investments in infrastructure, technology, local content and workforce development.
Tinubu urges industry to create more local value
The president called on companies operating across the petroleum value chain to contribute more to Nigeria’s industrial development.
He said operators should invest in local expertise, technology, infrastructure and human capital while strengthening environmental protection and community development.
Tinubu warned that the government increasingly expected petroleum companies to generate broader economic benefits rather than focus solely on extracting oil and gas.
He said the sector should create an environment in which hydrocarbon resources support jobs, investment, technological development and economic prosperity.
The president also encouraged investors with the technical expertise and financial capacity to develop Nigeria’s oil and gas resources to take advantage of opportunities in the industry.
OTL marks two decades of industry changes
Chairman of the OTL Africa Advisory Board, Adetunji Oyebanji, said Africa’s downstream petroleum sector had changed significantly since the organisation was established in 2007.
He noted that developments in refining, logistics and market liberalisation had improved the continent’s ability to manage its own energy supply arrangements.
Oyebanji singled out the Dangote Refinery as an important development for Nigeria’s domestic petroleum supply and regional trade prospects.
His remarks underscored the growing emphasis on expanding local refining capacity and strengthening energy infrastructure across Africa.
The government’s challenge will be to translate its commitments into operational refineries, sustained investment and a more dependable domestic supply of petroleum products.
