The state-owned Nigerian National Petroleum Corporation (NNPC) plans to transfer its four refineries to private firms under operation and maintenance contracts. The four NNPC refineries (Warri, Kaduna and Port Harcourt I and II), which have a total capacity of 445,000 bbl/d but have a very low capacity utilisation rate (2.2% in 2019), are currently being rehabilitated. They will be handed over after the revamp. The public-private partnership (PPP) will at first concern only one refinery. It will be expanded to the two others at a later stage.
Private companies are also investing in the Nigerian refining sector. The Nigerian conglomerate Dangote Group is investing US$9bn in a 650,000 bbl/d refinery in Lekki, which is slated for completion in 2021. Once built, the refinery will be able to accommodate multiple grades of domestic and foreign crude and process these into high-quality gasoline, diesel, kerosene, and aviation fuels that meet Euro 5 standards. In 2018, imports accounted for more than 70% of Nigeria’s demand for petroleum products.
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