NNPC demands profitable refineries, explains Dangote crude supply

The Nigerian National Petroleum Company (NNPC) has announced it will no longer rehabilitate state-owned refineries without a clear route to profitability, explaining that its crude supply to the Dangote Petroleum Refinery is partly denominated in naira and dollars due to foreign currency obligations. NNPC Group CEO Bayo Ojulari made these remarks during a media briefing in Abuja, where he discussed the company's 2025 financial results and strategic vision.

Ojulari revealed that the NNPC had learned from previous rehabilitation efforts and was now seeking technical equity partners with a stake in the performance of the facilities. He emphasized that the company aims to have refineries that are self-sustaining, profitable, and sustainable. Ojulari also explained that the previous rehabilitation model failed to incentivize contractors, as they received payment without any stake in the refinery's performance after completion.

The NNPC has stopped using crude oil to fund rehabilitation arrangements that do not deliver positive commercial outcomes, reducing waste and improving the company's financial structure. The Dangote Refinery, which is supplied with crude under the federal government's naira-for-crude arrangement, has complained about inadequate crude supplies, forcing it to source more from the international market.

NNPC maintains that it supplies all available cargoes under the naira-denominated program, but its financial commitments are in dollars, making it difficult to expand the arrangement.