The Nigerian National Petroleum Company has attributed the persistent underperformance of the country’s state owned refineries to operational inefficiencies rather than lack of funding. Company officials made this position known during a recent briefing where they addressed ongoing concerns about fuel imports and the failure of local refining facilities to meet domestic demand.
According to the company, years of poor maintenance culture, outdated equipment and inconsistent management practices have taken a heavy toll on the refineries. These challenges, officials said, have prevented the facilities from running at optimal capacity despite repeated financial interventions over the years.
The national oil company noted that significant funds had previously been allocated for turnaround maintenance and rehabilitation projects. However, the expected results were not fully achieved due to weak project execution, limited technical oversight and disruptions caused by pipeline vandalism and crude supply issues.
Industry analysts say Nigeria’s dependence on imported refined petroleum products has put pressure on foreign exchange reserves and contributed to price volatility. They argue that functional local refineries would reduce import bills, create jobs and stabilise supply across the country.
NNPC officials explained that the company is now focusing on a new operational model that emphasises performance based management and partnerships with experienced technical firms. They said the goal is to ensure that future rehabilitation efforts are tied to clear timelines, measurable outputs and accountability mechanisms.
The company also pointed to ongoing reforms aimed at commercialising its operations. As a limited liability company, it said it is now driven by efficiency and profitability targets rather than relying solely on government subventions. This shift, according to management, will encourage better cost control and improved service delivery.
Stakeholders in the energy sector have expressed mixed reactions. Some welcomed the candid admission of operational shortcomings, saying it reflects a willingness to confront long standing issues. Others remain sceptical, noting that similar promises have been made in the past without lasting improvement.
Energy experts stress that restoring refinery operations is critical for Nigeria’s economic stability. They say local refining capacity would ease fuel shortages, support industrial growth and reduce the burden of subsidy related spending.
As rehabilitation projects continue, Nigerians are watching closely to see whether the new approach will finally turn around the fortunes of the country’s refineries. The outcome could determine how soon the nation moves from heavy dependence on imported fuel to greater self sufficiency in petroleum products.
