By Olaoluwa Oni
July 13, 2025
The Nigerian National Petroleum Company Limited (NNPCL) has come under intense public scrutiny as its top executive admitted that Nigeria’s state-owned refineries remain non-functional despite over $18 billion spent on their rehabilitation over the years.
This revelation, which surfaced late last week, has sparked nationwide outrage and reignited debates around the failure of past and present administrations—especially that of President Bola Ahmed Tinubu—to address the country's chronic dependence on imported petroleum products.
During a presentation at an energy forum in Abuja on Friday, the Group Chief Executive Officer of NNPCL, Mr. Bayo Ojulari, disclosed that the state oil company is now actively considering the outright sale or concession of the Port Harcourt, Warri, and Kaduna refineries due to their outdated infrastructure and consistent underperformance, despite multiple turnaround maintenance efforts.
“We are reviewing all options,” Ojulari stated. “After decades of investments and so-called rehabilitation, these assets are no longer viable by modern standards. The economics just don’t work anymore.”
This admission came on the heels of a bold statement by Africa’s richest man, Alhaji Aliko Dangote, who revealed on Thursday that he does not believe the government-owned refineries will ever return to full operation. Speaking at the Afreximbank Annual Meetings in the Bahamas, Dangote questioned the rationale behind pouring billions into “obsolete facilities” when private-sector-led refineries like his 650,000 barrels-per-day Dangote Refinery in Lagos are already positioned to meet local and regional demand.
The staggering amount—estimated at over $18 billion—allegedly pumped into the refineries across successive administrations has now been called into question by opposition figures, energy experts, and civil society groups.
⚠️ Mounting Criticism Against Tinubu Administration
Opposition leaders, including members of the Labour Party and the Peoples Democratic Party (PDP), blasted the Tinubu-led federal government for what they described as a “systemic betrayal of public trust” and a “gross mismanagement of critical national assets.”
“President Tinubu campaigned on fixing our broken refineries. Today, we are hearing from the government itself that there is no hope. This is unacceptable,” said PDP chieftain and former Vice President Atiku Abubakar in a statement on Saturday.
Nigerians, who continue to suffer under skyrocketing fuel prices, erratic power supply, and economic instability, are demanding accountability for the failed investments and alleged misappropriation of funds.
⚙️ What Happens Next?
Industry analysts suggest that Nigeria may now move toward a complete deregulation of the downstream sector, relying entirely on private refineries like the Dangote facility and modular refineries to fill the gap.
However, critics argue that selling off public assets without a clear and transparent framework could repeat past mistakes and favor a few elite players without solving the structural issues plaguing the sector.
📉 A Legacy of Waste
The story of Nigeria’s refineries is emblematic of a larger governance crisis. Built decades ago and poorly maintained, these once-proud national assets have been riddled with corruption, mismanagement, and political interference.
Despite multiple timelines and reassurances, none of the refineries have resumed consistent production in over a decade.
The current state of Nigeria’s refineries is more than a technical failure—it is a stark indictment of the nation's political and economic leadership over several decades. As the Tinubu administration faces pressure to act decisively, Nigerians are demanding not just explanations—but consequences.
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