Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, has denied ordering the Nigerian National Petroleum Company Limited (NNPC Ltd) to halt refinery operations.
The controversy began when Kamoru Busari, Director of Upstream, suggested Lokpobiri advised NNPC to abandon its refineries for equity participation in others.
“I wish to categorically state that the claim that I directed the Nigerian National Petroleum Company Limited (NNPCL) to stop running its own refineries and focus solely on equity participation in other refineries is false,” Minister Lokpobiri declared in a statement posted on his X platform.
The minister emphasized the autonomous nature of NNPC Ltd, explaining, “NNPCL is a company governed under the Companies and Allied Matters Act (CAMA), with a functional board and management.”
Clarifying the relationship between his ministry and NNPC Ltd,
Lokpobiri stated, “The Ministry of Petroleum Resources does not control or run NNPC Ltd, as it operates independently like any corporate entity.”
He further outlined the government’s position on the oil and gas sector: “We encourage companies, including NNPCL, to operate independently, following global best practices. While we provide strategic guidance, we do not interfere directly in the operations of these companies.”
The minister reaffirmed the government’s commitment to domestic refining capacity, stating, “I reaffirm our commitment to supporting the growth and independence of NNPCL, ensuring that its operations are in line with international standards for efficiency and transparency and profitability.”
Nigeria’s refining sector has faced significant challenges over the years.
The country owns four refineries located in Kaduna, Warri, and Port Harcourt, which have remained non-operational despite substantial investments in maintenance efforts.
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The recent inauguration of the Dangote Refinery in Lagos has brought new hope to Nigeria’s refining capacity. However, NNPC’s equity stake in the project has seen a reduction from an initial 20 percent to 7.25 percent.
Industry experts maintain that the inability to operate local refineries effectively remains one of the critical challenges facing Nigeria’s oil sector.
