Moment of truth?

“We were running processes, not enterprises,” he also said, adding: “Money was going out, but value was not coming in.”

While admitting that “These refineries mean a lot to Nigerians emotionally,” he nonetheless submitted: “But emotion cannot replace truth.”

“At some point, leadership requires honesty,” he further said. “We had to admit that this system was not working.” “You cannot fix a problem you refuse to acknowledge,” he said, while describing the shutdown of the refineries as a necessary step to end decades of self-deception in the country’s downstream oil sector. His company, he said, is now focused on restructuring the refineries with credible partners.

It is unfortunate that the nation only arrived at this point after a record $2.738 billion of public funds had been sunk into the refineries’ rehabilitation. The old 60,000 bpd Port Harcourt plant, awarded to Italian firm Tecnimont SPA for $1.5 billion, whose reopening in November 2024 was celebrated with fanfare barely worked for six months before being shut down in May 2025 for maintenance, has apparently been deemed irredeemable.

Same with the remaining two –   the Warri Refining and Petrochemical Company (WRPC), awarded for $497 million and whose mechanical works were declared as completed and so ready for testing; and the 110,000 bpd Kaduna Refinery and Petrochemicals Company (KRPC), also awarded at a princely sum of $741 million to the same company, Daewoo Engineering and Construction Company, originally scheduled to restart by the end of 2024.

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Surely, Nigerians will recall the pledge by the NNPCL-GMD last July to reassess the company’s refinery strategies in its entirety, with a promise to conclude the review by the end of the year.  He had said on the occasion that “all the options”, including outright sale “are on the table…but that decision will be based on the outcome of the reviews”. Given the latest development, Nigerians should no longer be in doubt about the resolve of the NNPCL for a new approach on the refineries.

Yet, questions persist.

First is how the four refineries, farmed out to different contractors at different times for repairs, produced the same basic outcome to the point that the entire exercise is being described as jinxed. While the issue might seem somewhat academic at this point; it seems elementary that those charged with the performance of that public duty but have ended up betraying the country, should be called to account.

Second is the question of what the NNPCL plans to do with the refineries, going forward. This question, has, to the best of our knowledge, remained largely unanswered. The NNPCL has spoken of its desire to pivot toward restructuring with credible partners. Although the details are still, at best sketchy, at this time, Nigerians deserve to know the contents.

Even then, the big problem is whether a company that has made such a mess of the TAM could be trusted to midwife such lofty transition. Still, to the extent that Nigerians would baulk at any suggestion that public funds be further deployed under any guise, finding that credible player with the financial muscle and technical expertise to partner with would seem the best option at this time.

If it becomes necessary as it appears to be the case, to guarantee utmost transparency and proper valuation, the Bureau for Public Enterprises might be called in to take the lead.