Latest news with #NigerianNationalPetroleumCompany
Business Insider
12-07-2025
- Business
- Business Insider
Nigeria's NNPC considers refinery sale despite billions spent on repairs
Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, says efforts to revive Nigeria's state-owned refineries are becoming 'a bit more complicated.' Efforts to revive Nigeria's state-owned refineries are encountering increased complications, according to the CEO of NNPC Limited, Bayo Ojulari. Despite significant investments into modernizing refinery technology, expected improvements have yet to be realized due to unforeseen challenges. The Port Harcourt refinery continues to face operational issues, requiring periodic shutdowns for maintenance following its initial restart. The Nigerian National Petroleum Company (NNPC) Limited is weighing the option of divesting its state-owned refineries, following years of expensive rehabilitation efforts that have produced little progress. Speaking to Bloomberg on the sidelines of the 9th OPEC International Seminar in Vienna, the Group Chief Executive Officer of NNPCL, Bayo Ojulari, said the NNPC is currently reassessing its refinery strategy, with plans to complete the review by the end of the year. What Bayo said: 'So refineries, we made quite a lot of investment over the last several years and brought in a lot of technologies. We've been challenged, ' he said. 'Some of those technologies have not worked as we expected so far. But also, as you know, when you're refining a very old refinery that has been abandoned for some time, what we're finding is that it's becoming a little bit more complicated," 'So we're reviewing all our refinery strategies now. We hope before the end of the year, we'll be able to conclude that review. That review may lead to us doing things slightly differently.' His comments come amid renewed scrutiny of the Port Harcourt refinery, which NNPC announced had begun crude oil processing on November 26, 2024. However, the plant was shut down again in May for maintenance. Several billions of dollars have been pumped into reviving Nigeria's state-owned refineries. In March 2021, the federal government approved $1.5 billion for the rehabilitation of the Port Harcourt refinery. Later that year, the Federal Executive Council (FEC) also approved $1.48 billion for the phased rehabilitation of the Warri and Kaduna refineries, with timelines of 21, 23, and 33 months respectively. Yet, despite the heavy investment, the facilities are still not producing any refined products. Africa's richest man and owner of the world's largest single-train refinery, Aliko Dangote, recently expressed scepticism about the viability of Nigeria's state-owned refineries in Port Harcourt, Warri, and Kaduna, despite an estimated $18 billion reportedly spent on their rehabilitation over the years.
Yahoo
19-06-2025
- Automotive
- Yahoo
Shortages hit Nigeria's drive towards natural gas-fuelled cars
Motorists in Nigerian cities are spending hours, or even days, queuing for natural gas to power their cars after the government promoted its use as an alternative fuel. Some are so frustrated they say they regret the decision to convert their vehicle engines to use compressed natural gas (CNG) instead of petrol or diesel. Murtala Ishola, who is in his early 60s, said he was used to queuing for hours to fill up his gas tank but recently it had become a days-long wait. "I have been here for the 5th day," he told AFP outside a filling station in the capital Abuja. Nigeria is promoting CNG as a solution to alleviate perennial fuel shortages and the five-fold price hike that followed the abolition of petroleum fuel subsidies by President Bola Tinubu in May 2023. The oil-rich country has long been one of Africa's top exporters of crude but struggles to provide refined fuel to domestic users. Four months after scrapping the fuel subsidies, Tinubu established the Presidential Compressed Natural Gas Initiative (PCNGI) to drive CNG adoption and ease Nigeria into a cleaner energy era. Experts say mass adoption of CNG will reduce greenhouse gas emissions, improve air quality and cut maintenance costs. By the end of last year, approximately 100,000 cars had been converted, with more than $200 million already invested in the scheme, according to the government. With about 12 million vehicles on Nigerian roads, the government aims to convert one million commercial vehicles by 2026. But many of those whose cars now use the gas in Abuja say that the long wait in queues erodes the gains of the conversion. - 'Plan loses credibility'- - A fuel attendant told AFP on condition of anonymity that the CNG shortage was primarily due to logistics problems -- inadequate delivery trucks and bad roads from the source. Gas used in Abuja comes by road from the south-central state of Kogi, around 235 kilometres (146 miles) from the capital. The gas, mostly made of methane, is extracted from underground in a process similar to crude oil production and then compressed for storage and transportation. People also complain that fuelling stations are too few and far between. PCNGI officials did not respond to AFP requests for comment. However, the state-run Nigerian National Petroleum Company (NNPC) promised in February to improve supplies. Nigeria's CNG market operates under a state-backed hybrid model. The NNPC controls upstream gas supply, while licensed private firms handle distribution under the oversight of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, another state oil firm. The gas is eventually retailed out to motorists through independent stations operated by marketers. However, with limited CNG stations in the capital, Ishola said he may be forced "to revert to petrol", which is nearly four times more expensive than gas. "I have been here with others since Monday morning," a visibly angry Ibrahim Halilu told AFP on a Friday. A commuter vehicle driver Akande George said the trouble he endures to refuel his car is forcing him to rethink his options. "I may leave this commercial driving life for... farming," he said. "I am getting older and can't keep pushing these daily struggles." Experts warn that shortages risk stalling or derailing the national plan to transition from petrol in Africa's leading crude producer. "One of the key success factors in any fuel-switching programme is consumer confidence in fuel availability," said Ayodele Oni, a legal expert in energy and commercial law. "If people cannot consistently access CNG, the plan loses credibility, both among the public and potential private sector investors. "The shortages could weaken momentum, create implementation delays and reduce the expected economic and environmental benefits of the programme," he added. su/tba/sn/kjm
Yahoo
26-05-2025
- Politics
- Yahoo
Could Nigeria's careful ethnic balancing act be under threat?
In Nigerian politics, there has long been an informal understanding: presidential appointments should carefully balance the country's many ethnic and religious differences. Today, there are growing concerns that this is being ignored. While the constitution requires regional representation in cabinet positions, the broader distribution of other prominent roles has traditionally followed a convention aimed at fostering national cohesion. Nigeria's fractious divisions have in the past torn the country – Africa's most populous – apart. Concerns about fairness in presidential appointments are not new, but a chorus of criticism is growing over President Bola Tinubu's picks, with some accusing the head of state – who has been in power for two years – of favouring people from his own Yoruba ethnic group. The presidency vehemently denies the accusation. There have long been fears that members of one ethnic group would come to dominate key positions – and this means that presidential appointments are closely scrutinised whenever they are announced. There are over 250 ethnic groups in the country with Hausa-Fulanis, Igbo and Yoruba – hailing from the north, south-east and south-west respectively - being the three largest. Critics say that Tinubu, a southern Muslim, showed signs of ignoring precedent from the onset when he picked another Muslim (although from the north) to be his running mate for the last election. Since the return of democracy in 1999, the major parties had always put forward a mixed Muslim-Christian ticket, as the country is roughly evenly divided between followers of the two religions. Tinubu's appointments since becoming president in May 2023 are facing growing cricisim. Although there are dozens of roles for a head of state to fill, there are eight jobs that "are the most crucial for every administration", according to political analyst and barrister Lawal Lawal. These are the heads of the: central bank state-owned oil company, NNPC police army customs service intelligence agency anti-corruption agency and revenue service. There is no constitutional ranking of positions, but collectively these roles control the key financial and security apparatus of the country. Every president inherits his predecessor's appointees, but has the prerogative to replace them. As of April, all eight positions under Tinubu are now filled by Yorubas. The recent appointment of former Shell boss Bayo Ojulari to head the state-owned oil company, the Nigerian National Petroleum Company (NNPC), in place of a northerner turbocharged the debate about the apparent monopoly of one group in top positions. Looking at who filled the same posts under Tinubu's two immediate predecessors, there was no such dominance of one ethnic group at the same stage of their presidencies. Goodluck Jonathan – who served from 2010 to 2015 – had a relatively balanced team of two ethnic Fulanis, two Hausas, one Atyap, one Igbo, one Yoruba and one Calabar. When it came to Muhammadu Buhari – in power from 2015 to 2023 – the situation was less clear. In the top eight he had three Hausas, two Kanuris, one Igbo, one Yoruba and one Nupe. But in the minds of many Nigerians, Hausas, Kanuris and Nupes are all seen as northerners – and therefore there was a perception that Buhari, who is from the north, showed favouritism. Some argue that Tinubu's appointments have merely continued the trend, but the 100%-Yoruba make-up of the eight key positions is unprecedented. "For a democratically elected president, I cannot remember at any point in Nigerian history where you have this high concentration of a particular ethnic group holding most of the sensitive positions," history professor Tijjani Naniya told the BBC. This is not just about what has happened in the past but it could have an impact on the unity and even the future of the country, the professor said. "For me, the fear is what if the next president continues on this path and picks most of the sensitive positions from his ethnic group, it diminishes the feeling of belonging among the rest and also reduces belief in democracy," he said. In the last two years, many northerners, mostly Hausa-Fluanis, have looked at the apparent direction of travel with alarm. The current men (there are no women) in charge of the NNPC, the police, customs and the Economic and Financial Crimes Commission (EFCC) all replaced northerners. The removal of Abdulrasheed Bawa, a Hausa, as boss of the EFCC in 2023 just two years after he was appointed was especially controversial. He was arrested, accused of abuse of office and detained for over 100 days before the charges were dropped. He was replaced by Ola Olukoyode, an ethnic Yoruba. Some from the north felt Mr Bawa was unfairly treated and pushed aside to make way for Mr Olukoyode. "The president needs to know that the Yoruba people are just a part of the country, and all appointments should be spread across all ethnic groups and regions," social affairs analyst Isah Habibu told the BBC. Without addressing specific cases, a Tinubu spokesperson has said the president is being fair and balanced, by taking the wider view of all appointments. Media aide Sunday Dare did try to go into detail, saying overall, 71 northerners and 63 southerners had been appointed by Tinubu. But his 9 April post on X was later deleted, after people pointed out errors in his claim. He promised an updated list, but more than six month slater, it has yet to appear. Tinubu faces critics even from within his own party. Senator Ali Ndume is from the north and – like Tinubu – belongs to the All Progressives Congress. In one television interview he said he had gone on air to talk about the president's appointment "wrongdoings". Ndume said he was shocked, describing them as "non-inclusive and not reflecting the president's 'Renewed Hope' agenda, which promised to carry every section of the country along". Another presidential aide, Daniel Bwala, disputed the idea that some positions were more significant than others. "All I know is that the constitutional provisions [regarding appointments] have been taken care of by the president - there's nowhere in the constitution [where it is] mentioned top five, top 10 and the rest," he told the BBC. "The way we see it is that any position or appointment that one is privileged to serve in is very critical and important. "The national security adviser is from the north-east, the chief of defence staff is from the north-west and the secretary to the federal government is from north-central." The Office of the Secretary to the Government of the Federation, which coordinates policy on behalf of the presidency, released a statement on 12 April saying Tinubu was being fair. "This administration is dedicated to ensuring that all regions and demographics of the country are adequately represented in its institutions and agencies," it said. Political analyst Mr Lawal said the president should appoint the best person for the job, irrespective of their ethnic origin – and agues that this is what Tinubu is doing. "It's high time Nigeria looks beyond ethnicity," he said. There could be a time when Nigerians no longer obsess over the ethnic origins of those in the upper echelons of government, but historian Prof Naniya says this is still some way off. He believes it can only happen when the country gets at least four presidents in succession who give every section a sense of belonging in terms of projects and appointments. "I think it can be done but needs the right leaders." Nigeria's spectacular horse parade closing Ramadan 'I scarred my six children by using skin-lightening creams' 'How I survived Nigeria attack that killed my 16 friends' Are Nigerians abroad widening the class divide back home? Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Africa Daily Focus on Africa
Yahoo
02-04-2025
- Business
- Yahoo
Ex-Shell boss tasked with cleaning up Nigeria's oil sector
Nigeria's president has appointed Bayo Ojulari - a former Shell executive - to lead the state-owned oil company, as part of sweeping reforms aimed at cleaning up the sector dogged by allegations of corruption, pollution and decades-long inefficiency. Mr Ojulari was picked in a "crucial" overhaul of the Nigerian National Petroleum Company (NNPC), the presidency said on Wednesday. It added that the restructure - which also involved the entire board being replaced - was necessary to drive economic growth in Africa's biggest oil exporter. President Bola Tinubu's time in power has seen a series of economic shocks, with food and fuel prices rocketing over the past couple of years. In its statement announcing the NNPC restructure, the presidency said Tinubu wishes to boost Nigeria's oil output and refining capability. Nigeria's oil production slowed to less than a million barrels per day in 2023, news agency AFP reported. Tinubu's administration wants to hit two million barrels per day of oil by 2027 and three million barrels per day by 2030. Tasked with executing this mission, Mr Ojulari replaces former NNPC boss Mele Kyari. Mr Ojulari joined Shell Nigeria 1991 and during his 24 years there, he held roles within the country as well as Europe and the Middle East. Mr Ojulari rose to become the Managing Director of Shell, a position he held for six years. He left the company in 2021 to join the investment advisory organisation BAT Advisory and Energy Company. He then moved to Renaissance Africa Energy Company last year. Along with trying to boost Nigeria's oil production, Mr Olujari will no doubt also seek to improve the NNPC's poor public image. For many years, under previous governments, much of the company's profits never reached the treasury. And it is only in the last five years that the NNPC has been publishing accounts. The NNPC has also been under financial strain - last September it admitted to having debts of around $6bn (£4.5m). The NNPC and Nigeria's 'oil mafia' Oil clean-up 'scam' warnings ignored by Shell, whistleblower tells BBC Why Nigerians are praying for the success of a new refinery Nigeria's stolen oil, the military and a man named Government Go to for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Africa Daily Focus on Africa
BBC News
02-04-2025
- Business
- BBC News
Bayo Ojulari: Nigeria's Bola Tinubu names ex-Shell boss to head NNPC in major overhaul
Nigeria's president has appointed Bayo Ojulari - a former Shell executive - to lead the state-owned oil company, as part of sweeping reforms aimed at cleaning up the sector dogged by allegations of corruption, pollution and decades-long Ojulari was picked in a "crucial" overhaul of the Nigerian National Petroleum Company (NNPC), the presidency said on added that the restructure - which also involved the entire board being replaced - was necessary to drive economic growth in Africa's biggest oil Bola Tinubu's time in power has seen a series of economic shocks, with food and fuel prices rocketing over the past couple of years. In its statement announcing the NNPC restructure, the presidency said Tinubu wishes to boost Nigeria's oil output and refining oil production slowed to less than a million barrels per day in 2023, news agency AFP administration wants to hit two million barrels per day of oil by 2027 and three million barrels per day by with executing this mission, Mr Ojulari replaces former NNPC boss Mele Ojulari joined Shell Nigeria 1991 and during his 24 years there, he held roles within the country as well as Europe and the Middle Ojulari rose to become the Managing Director of Shell, a position he held for six years. He left the company in 2021 to join the investment advisory organisation BAT Advisory and Energy then moved to Renaissance Africa Energy Company last year. More stories on Nigeria's oil industry: Oil clean-up 'scam' warnings ignored by Shell, whistleblower tells BBCWhy Nigerians are praying for the success of a new refineryNigeria's stolen oil, the military and a man named Government Go to for more news from the African us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica
