Buhari Approves New Investment Model for NNPC’s Refineries

Chineme Okafor in Abuja

The Nigerian National Petroleum Corporation (NNPC) on Wednesday disclosed that President Muhammadu Buhari has approved its implementation of a new commercial model that would lead to investors’ interest in the restoration of the efficiency levels of its refineries in Port Harcourt, Warri and Kaduna.

Under the new model, NNPC said Buhari approved the engagement of strategic investors who would come in with refining and funding expertise to partner with local investors who understand Nigeria’s downstream oil market to revamp the refineries.

NNPC’s refineries have for years operated below their capacities. They have also become more of loss entities in the monthly profit and loss accounts of the corporation.

The corporation however stated that within the new model, this would change with capital investments by investors who would be repaid from incremental production of the refineries on prior agreed terms.

More to come…