The Nigerian National Petroleum Company Limited has said it is ending the practice of financing the Port Harcourt and Warri refineries with loans backed by crude oil production, opting instead for a performance-driven funding model aimed at making the facilities commercially sustainable.
The NNPC said both refineries must become financially self-sustaining, as the national oil company moves to a new commercial model that requires the plants to raise financing for their operations rather than rely on loans.
The Group Chief Executive Officer of NNPC Ltd, Bayo Ojulari, disclosed this on Tuesday while speaking at the Nigeria Oil and Gas Conference in Abuja.
According to him, the company’s long-term strategy is to ensure the refineries operate as commercially viable businesses capable of attracting financing on their own.
He said future financing for the refineries would be tied to their productivity and operational performance rather than crude oil volumes.
The declaration marks a significant shift in NNPC’s approach to refinery financing, amid ongoing efforts to reposition the state-owned refineries under commercially sustainable business models.