Nigeria’s energy regulators and operators have renewed calls for operational excellence and full utilisation of domestic refining assets, as reforms begin to unlock output and stabilise fuel supply across the country.
At the 2026 Nigerian International Energy Summit in Abuja, the Nigerian National Petroleum Company Limited (NNPC) admitted that decades of failed turnaround maintenance at state-owned refineries were driven by weak operational capacity rather than funding gaps or engineering shortcomings.
NNPC Group Chief Executive Officer, Bayo Ojulari, said billions of dollars had been spent on financing arrangements and engineering, procurement and construction (EPC) contracts, with little focus on how the refineries would be run sustainably over their operational lifespans.
“Everyone focused on financing and EPC. The financier gets paid, the contractor delivers and leaves. But refineries are long-term businesses, and that is where we failed,” Ojulari said.
He stressed that without strong institutional knowledge, skills development and operational oversight, operations and maintenance contracts had become cost drains with no accountability or value creation.
Under a new board-approved strategy, Ojulari said NNPC is seeking partners with proven expertise in operating large refineries, rather than purely financial investors. He clarified that the plan involves selective equity dilution to attract experienced operators with long-term commitment.
“We are not looking for money. We are looking for people who know how to run refineries,” he said.
Ojulari disclosed that discussions were ongoing with potential partners, including a major Chinese refining company, with technical teams expected to inspect one of Nigeria’s refineries. The goal, he added, is to transform the facilities into self-financing commercial enterprises rather than government-dependent assets.
The operational shift, he noted, would also guide Nigeria’s broader downstream and gas strategy, including partnerships under the naira-for-crude framework and renewed emphasis on gas-based industrialisation.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has called for full optimisation of the 650,000-barrel-per-day Dangote Petroleum Refinery, describing it as critical to meeting domestic petrol demand and restoring market confidence.
NMDPRA Chief Executive, Saidu Mohammed, said the refinery should be viewed as a structural solution to Nigeria’s long-standing supply instability and import dependence. While the plant already supplies a significant share of domestic fuel needs, he said sustained optimal utilisation is required to translate capacity into lasting energy security.
The call comes amid full downstream deregulation under the Petroleum Industry Act, rising private refining capacity and wider macroeconomic reforms, including naira-based crude and product trading. Regulators said these measures have reduced fiscal leakages from fuel imports by trillions of naira.
Mohammed added that regulatory predictability would support the completion of licensed private refineries and rehabilitation of state-owned plants, helping attract new investment into the sector.
Similarly, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) projected a more business-friendly oil and gas environment, citing faster approvals, regulatory certainty and smarter partnerships as key drivers of production growth.
NUPRC Chief Executive, Oritsemeyiwa Eyesan, said early regulatory interventions had helped restore delayed production for operators, reinforcing confidence in the commission’s focus on certainty, growth and sustainable governance. She noted that Nigeria is targeting output above 1.7 million barrels per day, with a medium-term goal of two million barrels.
Industry operators echoed the optimism. Group Executive Director of Pan Ocean Oil Corporation and Newcross Group, Dr Bolaji Ogundare, said asset diversification, infrastructure investment and partnership-driven financing have strengthened sector resilience.
In a related development, Dangote Petroleum Refinery & Petrochemicals dismissed claims that it imports finished petroleum products, describing the reports as misleading.
Speaking during a media briefing, the refinery’s Chief Executive Officer and Managing Director, David Bird, explained that processing intermediate feedstocks is standard global practice and does not amount to importing finished fuels.
He said the refinery operates on European and Asian merchant refinery models, producing high-quality petrol and diesel that meet international environmental and health standards.
“Our gasoline is lead-free and MMT-free with 50 parts per million sulphur, while our diesel meets ultra-low sulphur specifications,” Bird said.
Bird stressed that only fully refined, market-ready products are supplied to the Nigerian market, adding that semi-processed materials are further refined internally and never sold as finished fuel.
He said the refinery was established to end Nigeria’s exposure to substandard fuels and has since begun exporting products to international markets, underscoring their quality and competitiveness.
Reaffirming commitment to transparency, Bird urged the media to help educate the public on the distinction between intermediate feedstocks and finished fuels, noting that the refinery has contributed to easing fuel scarcity, stabilising the naira and reducing pressure on foreign exchange.
