The Nigerian National Petroleum Company Limited has confirmed its intention to raise additional funding to complete the rehabilitation of the Port Harcourt Refining Company and the other two refineries it operates. The company also declared that the PHRC is not for sale.
Within two decades, from 2002 to 2012, NNPC secured funding approval of over N16tn for the turnaround maintenance of the Port Harcourt, Warri, and Kaduna refineries. It is also actively exploring advanced technical partnerships as part of a renewed strategy to accelerate the rehabilitation of the Port Harcourt refinery.
This was because the state-owned oil firm has officially ruled out the sale of the Port Harcourt Refining Company, reaffirming its commitment to completing high-grade rehabilitation and retention of the plant.
Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, made the announcement during a company-wide town hall meeting at the NNPC Towers in Abuja, ending weeks of speculation over the future of the country’s most prominent state-owned refining asset.
A statement by the company management on Wednesday read, “The Nigerian National Petroleum Company Limited has officially ruled out the sale of the Port Harcourt Refining Company, reaffirming its commitment to completing high-grade rehabilitation and retention of the plant.”
He described selling the Port Harcourt Refining Company as “ill-advised and sub-commercial.” Ojulari’s remarks come amid rising public concern sparked by his earlier comments at the 2025 OPEC Seminar in Vienna, where he said “all options are on the table” regarding the future of Nigeria’s refineries.
The statement, released on the same day Dangote Group President Alhaji Aliko Dangote expressed doubts about the viability of the state-owned refineries, triggered a wave of speculation that a sale might be imminent.
According to Ojulari, the new position of the firm isn’t a shift. Rather, it is informed by ongoing detailed technical and financial reviews of the Port Harcourt, Kaduna, and Warri refineries.
The statement added, “The ongoing review indicates that the earlier decision to operate the Port Harcourt refinery, before full completion of its rehabilitation, was ill-informed and subcommercial.
“Although progress is being made on all three, the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery. Thus, selling is highly unlikely as it would lead to further value erosion.”
Commenting, the Independent Petroleum Marketers Association of Nigeria commended the plan by the company not to sell the Port Harcourt Refinery, insisting that the project is already 90 per cent completed and should be concluded by the original contractors.
The National Publicity Secretary of IPMAN, Chinedu Ukadike, who made the position known in a telephone interview with our correspondent on Wednesday, said it would be illogical to consider a sale after so much investment and progress on the rehabilitation work.
“Yes. There is no longer a need to sell the Port Harcourt refinery because it is 90 per cent completed. If they sell it now, it doesn’t make sense; nothing would be left for them,” Ukadike said.
He, however, questioned why the oil firm is searching for new technical partners to complete the project, warning that such moves may further delay the refinery’s eventual operation.
“Why are they looking for new technical partners? What happened to Tecnimont, who already built the refinery to a logical conclusion? NNPCL should just pay them,” he queried.
Ukadike attributed the delay in the refinery’s completion to non-payment of contractors, alleging that the Federal Government had yet to settle outstanding obligations to Tecnimont, the engineering, procurement, and construction firm handling the rehabilitation.
“The challenge delaying the project is that the Federal Government has not paid the company their money. So they should get paid, finish the job, and hand over the refinery,” he said.
While noting that any technical issues should be addressed by the original contractor, Ukadike urged the government to prioritise the timely completion and operation of the plant instead of exploring unnecessary alternatives.
“If there is any technical issue, they should be re-invited to sort it out. The refinery is almost ready. Let them finish it and start production,” he added.
However, an energy analyst, Kelvin Emmanuel, was not convinced about the new plan. He queried in a post on his official X handle, “What money is the company going to use to conduct the extensive rehabilitation. Is it planning to raise another crude-backed loan to finance it?
“Shouldn’t he be asking questions about the $2.9bn borrowed for rehabilitation within the last 4 years that’s unaccounted for?”
The Port Harcourt Refinery comprises two units, with the old plant having a refining capacity of 60,000 barrels per day, and the new plant 150,000 bpd, both summing up to 210,000 bpd.
The refinery has not operated at maximum capacity for over two decades. It was shut down in March 2019 for the first phase of repair works after the government secured the service of Italy’s Maire Tecnimont to handle the review of the refinery complex, with oil major Eni appointed technical adviser.
In 2021, NNPC Ltd said repairs had started at the refinery after the Federal Executive Council approved $1.5bn for the project. On December 21, 2023, the Nigerian government announced the mechanical completion and the flare start-up of the refinery.
In November 2024, the refinery commenced production after a long period of rehabilitation, but in May 2025, NNPC announced the shutdown of the refinery. The statement added that the declaration was received with applause from hundreds of staff attendees, who described the position as a renewed sense of business-focused direction across the organisation.
The town hall served as more than a performance update, it was an opportunity for candid and constructive engagement. The Executive Vice Presidents presented progress reports from the Upstream, Downstream, Finance, Business Services, Gas, Power, and New Energy businesses, highlighting operational achievements, ongoing reforms, and areas requiring attention.
In a tone marked by honesty and leadership, challenges and earlier missteps were acknowledged, and a clear roadmap was outlined for the journey ahead.
The announcement reinforces NNPC’s mandate as a strategic custodian of national energy infrastructure and reflects a firm resolve to deliver on the complete rehabilitation and long-term viability of Nigeria’s refineries. It also signals continuity in the Federal Government’s broader energy security objectives and a commitment to retaining critical assets under national control.
Feedback during and after the session revealed a workforce energised and aligned with the leadership’s vision. Described as “reassuring,” “transformational,” and “sustainable,” the atmosphere reflected an optimistic outlook among employees and hopefulness about the company’s evolving strategic direction.
“NNPC Ltd will continue to reposition itself as a commercially driven, professionally managed national energy company, grounded in transparency, focused on performance, and unwavering in its responsibility to its number one stakeholder group, Nigerians,” Ojulari concluded.
