Despite intense public criticism over plans to hand over the operations of the Port Harcourt and Warri refineries to private entities, the Nigerian National Petroleum Company Limited (NNPC) has officially commenced the evaluation phase of the proposed partnership.
​The transition comes in the wake of a massive federal expenditure, which saw close to $3 billion funneled into the rehabilitation of the state-owned refining assets. Critics and civil society groups have strongly questioned the rationale behind transferring operational control to private partners immediately after such heavy public investment.
​Defending the decision, the Group Chief Executive Officer of NNPC, Mr. Bayo Ojulari, disclosed via his official X (formerly Twitter) handle yesterday that the initiative is steadily progressing. According to Ojulari, the recently signed Memorandum of Understanding (MoU) with prospective technical and equity partners has now advanced to a rigorous due diligence stage.
​”The evaluation phase is a critical step to ensure that only technically competent and financially viable partners assume operational responsibilities,” Ojulari stated. He emphasized that the framework is geared towards securing long-term sustainable profitability and maximizing the country’s domestic refining capacity.
The operational handover specifically targets the Port Harcourt Refining Company (PHRC) and the Warri Refining and Petrochemical Company (WRPC).
Close to $3 billion in public funds was utilized during the rehabilitation phase to fix broken infrastructure and restore the plants to optimal functionality.
NNPC maintains that partnering with private operators will eliminate bureaucratic bottlenecks, introduce best-in-class operational standards, and mitigate future financial drains on the state.
​The move has sparked widespread debate across Nigeria’s economic and political landscapes. Opponents argue that privatization at this stage denies the public a direct return on a $3 billion taxpayer-funded investment, suggesting instead that the government should reap the benefits of a fully rehabilitated asset under state management.
​Conversely, proponents argue that historical mismanagement of Nigeria’s downstream sector proves that independent, private-sector-led operational models are the only sustainable path forward to prevent the refineries from falling back into disrepair.
​As the rigorous due diligence phase continues, stakeholders and citizens alike are watching closely to see which private partners will ultimately emerge to manage Nigeria’s multi-billion-dollar refining infrastructure.
