The Nigerian National Petroleum Company (NNPC) Limited has officially dispelled speculation surrounding the sale of its Port Harcourt Refining Company, reaffirming its commitment to complete the ongoing rehabilitation project and retain ownership of the critical national asset.
This declaration came directly from the Group Chief Executive Officer (GCEO) of NNPC Limited, Mr. Bashir Bayo Ojulari, during a company-wide town hall meeting held Tuesday, July 29, 2025, at the NNPC Towers in Abuja.
Ojulari told employees and stakeholders that contrary to recent speculation and prior comments hinting at possible divestment, “selling is highly unlikely as it would lead to further value erosion.” He emphasized that technical and financial reviews currently underway have shown that rushing to operate the Port Harcourt refinery before full rehabilitation completion was “ill-informed and sub-commercial.”
“Although progress is being made on all three refineries Port Harcourt, Warri, and Kaduna—the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery,” Ojulari said.
A Shift in Tone, Not Policy
This position marks a significant clarification from Ojulari’s earlier remarks at the OPEC International Seminar in Vienna earlier this month, where he told Bloomberg that “all options are on the table” regarding the future of Nigeria’s aging refineries. That comment, widely interpreted as a hint at privatization, sparked speculation and concern over the future of national energy infrastructure.
NNPC’s latest statement, however, reframes the earlier narrative highlighting that the company remains focused on technical and financial viability rather than liquidation.
According to Nairametrics, the Port Harcourt refinery, which is undergoing a $1.5 billion overhaul by Italian contractor Maire Tecnimont, has faced persistent delays due to structural complexities and legacy issues. But insiders now suggest that NNPC is doubling down on ensuring the refinery becomes fully functional before any commercialization or partnership options are considered.
Staff Reactions and Company Outlook
Tuesday’s town hall meeting was more than an internal update it served as a morale booster for NNPC employees. Attendees reportedly received the news with applause, describing the reaffirmed stance as “reassuring” and a sign of renewed business discipline.
Executive Vice Presidents from various departments Upstream, Downstream, Gas & Power, Finance, and New Energy presented operational updates, outlining challenges, strategic reforms, and progress made.
Ojulari acknowledged past missteps openly but set a forward-looking tone with a defined roadmap: “This is about correcting course, improving accountability, and keeping our most strategic assets under national control.”
Broader Implications: Sovereignty, Not Selloff
The announcement also aligns with President Bola Tinubu’s broader push for energy sovereignty and value retention within Nigeria. Analysts say the decision to retain Port Harcourt refinery under state control underscores the government’s commitment to securing energy supply while reducing import dependence on refined petroleum products.
“It’s not just a business decision it’s about safeguarding national interest and optimizing long-term returns for Nigerians,” noted energy analyst Gbenga Daramola in a phone interview with TheCable.
The clarification also brings some relief amid rising public concerns that the government may liquidate national assets under the guise of privatization or public-private partnerships.
What You Should Know
Earlier this month, during the 9th OPEC Seminar in Vienna, Ojulari said in an interview with Bloomberg that the company was undertaking a full strategic review of its refining assets and did not rule out the possibility of selling non-performing refineries like Kaduna and Warri.
“We’ve been challenged some of the technologies deployed have not worked as expected. We’re refining very old refineries that were abandoned for years. They are proving to be more complex than anticipated,” Ojulari admitted at the time.
However, the tone has since shifted, and Tuesday’s declaration now signals that at least for Port Harcourt the goal is to finish what has been started, with added technical support and a focus on long-term commercial viability.
Conclusion
With energy security now a top priority for Nigeria, and with international oil markets under pressure due to global conflicts and trade tensions, NNPC’s decision to retain and rehabilitate the Port Harcourt refinery sends a strong message of commitment to national development.
As the Federal Government presses ahead with domestic refining capacity expansion including Dangote Refinery’s phased production NNPC’s move may prove to be a strategic anchor in restoring energy independence for Africa’s largest oil producer.
