FAAC Distributes N1.97 Trillion to Federal, State, and Local Governments
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), has said the company does not have the capacity to operate refineries profitably on its own, stressing the need for private sector participation and partnerships.
Speaking during a recent engagement with stakeholders in the oil and gas sector, the NNPC boss explained that running refineries efficiently requires not only technical expertise but also strong commercial discipline and modern operational systems, which the company currently lacks in full measure.
He noted that Nigeria’s refineries have suffered years of poor maintenance, mismanagement, and underinvestment, making it difficult for the national oil company to run them as profitable businesses without external support.
According to him, attempts in the past to operate the refineries solely under government control resulted in continuous losses and heavy reliance on imported petroleum products. He said this experience showed clearly that a new model was needed.
The NNPC chief said the company is now focusing on partnership arrangements that would allow experienced operators to manage refinery operations while NNPC maintains ownership stakes. He described this approach as the most realistic path toward ensuring efficiency and sustainability.
He further explained that the goal is not just to get the refineries working, but to make them commercially viable so they can compete with private refineries and reduce Nigeria’s dependence on fuel imports.
The GCEO added that the government’s reforms in the oil and gas sector are aimed at repositioning NNPC as a profit-driven company rather than a loss-making government agency. He said transparency, accountability, and private sector expertise are critical to achieving this objective.
Industry experts have welcomed the statement, saying it reflects the reality of the challenges facing Nigeria’s downstream sector. They noted that without strong operational partners, government-run refineries are likely to continue struggling.
The remarks come at a time when Nigeria is pushing for increased local refining capacity, especially with the operation of private refineries across the country. Observers believe that aligning public refineries with private operators could help stabilize fuel supply and reduce pressure on foreign exchange.
The NNPC chief assured Nigerians that ongoing reforms are designed to improve efficiency and ensure long-term energy security for the country.
He said discussions are ongoing with potential partners, and the company remains committed to transforming Nigeria’s refining sector into a profitable and reliable industry.
About the Author
