The Nigerian National Petroleum Company Limited (NNPC) spent the better part of three decades and tens of billions of dollars on three refineries it built, owns outright and runs by itself. Port Harcourt, Warri and Kaduna remain, after repeated rounds of “rehabilitation,” largely moribund.
That wasted solo experiment, which has cost Nigeria about N3.2 trillion recently with nothing to show, is colliding with a very different outcome from a far more recent bet, where a minority in ownership but large in outcome, partnership-style investment in the Dangote Petroleum Refinery, is now being used inside Nigeria’s oil sector as a benchmark for capital efficiency.
In 2021, Nigeria’s Federal Executive Council approved NNPC’s acquisition of a 20 percent minority equity stake in Dangote Petroleum Refinery for $2.76 billion, $1 billion upfront in cash, and approximately $1.76 billion to be settled through crude supply over time.
NNPC paid only the cash tranche. By
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