The Nigerian National Petroleum Corporation (NNPC) plans to acquire stake in six private refineries developed in the country, including in the 650,000 bbl/d Dangote Petroleum refinery in the Lekki Free Zone near Lagos, which is expected to be commissioned in 2022. The government recently ordered the mandatory participation of the NNPC in any privately-owned refinery that exceeds 50,000 bbl/d.
Nigeria has a total refining capacity of about 450 kb/d (22.5 Mt), but most of it is not operational. Its refining output dropped by almost 90% between 2017 and 2019 to 0.5 Mt and only represented 2% of the refining capacity in 2019. More specifically, the capacity utilisation rate of the Port Harcourt refining complex (total capacity of 210,000 bbl/d) declined from a peak of 24.5% in 2017 to 0.3% in 2019. In April 2021, the NNPC signed a US$1.5bn contract with the Italian company Maire Tecnimont to rehabilitate the Port Harcourt refinery. The contract is aimed at restoring the complex to a minimum of 90% of its nameplate capacity. The project should be completed in three phases of 18, 24, and 44 months.
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