…unveils new financing models for refineries to curb borrowing against crude oil barrels
By Precious Mark
The Nigerian National Petroleum Company (NNPC) Limited has said that it has restored the average recovery rate at the country’s five export terminals to 98% and saved $3.4 billion through contract optimization over the past year.
The NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, disclosed this while delivering the industry keynote address at the 2026 Nigeria International Energy Summit and presenting NNPC’s scorecard from April 2025 to date.
According to him, the recovery followed three phases of intervention. Between 2021 and mid-2022, terminal recovery collapsed, with the Bonny Oil and Gas Terminal falling to about 1%.
This downturn was followed by industry-wide surveillance and security operations between late 2022 and 2023. From 2024 to date, recovery has been sustained across the Bonny, Forcados, and Brass terminals, based on data reconciled by the Nigerian Upstream Petroleum Regulatory Commission.
Ojulari also stated that all major crude evacuation lines, including the Trans Niger Pipeline, Trans Escravos Pipeline, Trans Ramos Pipeline, Trans Forcados Pipeline, and the Oando-Brass line, became 100% operational as of June 26, 2026.
Presenting NNPC’s performance under the theme “From Foundations to Future,” he noted that crude oil production rose by 6% year-on-year to 569.7 million barrels, while gas production increased by 8.1% to 2,576 billion standard cubic feet.
The NNPC Chief further revealed that the company remitted ₦19.5 trillion to the Federation Account during this period, representing a 21.8% increase.
Looking ahead, Ojulari projected that oil and condensate output will grow from 1.58 million barrels in 2024 to 2.91 million barrels by 2030, while gas production is expected to rise from 6.99 billion cubic feet to 11.60 billion cubic feet.
On financing, the GCEO said NNPC maintained 100% cash-call compliance in the 2025 financial year.
However, partner compliance stood at a blended 61%.
He noted that while 22% of joint venture partners were fully current and 48% were partially compliant, 30% were in significant default, which has triggered regulatory remedies.
He further reaffirmed NNPC’s commitment to sustaining its obligations to support the national production target of 2 million barrels per day.
To address funding gaps, Ojulari announced a new financing structure called Project NEXUS.
He explained that the model is designed to enable refineries and other assets to raise capital on their own merit instead of borrowing against crude oil barrels, emphasizing a future where refineries operate and deliver independently.
The NNPC boss also highlighted several strategic deals secured over the past year. These achievements include long-term liquefied natural gas feed-gas agreements of 1.29 billion standard cubic feet per day with NLNG signed in August 2025, over $20 billion in deepwater investments covering OPL 200/202, OPL 245, and Bonga North, and gas supply agreements with industrial off-takers like the Dangote Refinery in January 2026.
Additionally, agreements tied to the Ajaokuta Steel Company were signed between June and July 2026, while technical due diligence on the refineries’ total end-state programme was ongoing as of April 2026.
Ojulari added that seven major projects are expected to reach key milestones between July 2026 and December 2027. These milestones encompass the UTM FLNG, the OB3 and AKK domestic gas pipelines, the refineries’ total end-state programme, and deepwater assets such as Zabazaba, Owowo, and BSWAP, where final investment decisions are approaching.
However, he cautioned that Nigeria and Africa must move beyond isolated projects.
Ojulari observed that although Africa holds about 17% of global energy resources, the continent attracts a disproportionately small share of investments due to fragmentation among policy, capital, technology, and execution.
He stressed that no nation or company can unlock the full potential of energy in isolation, declaring that the winners of the next energy era will be those who build the most effective partnerships.
He concluded by urging governments, regulators, financiers, service providers, and host communities to collaborate in building integrated value chains backed by stable and transparent regulations to translate ideas into actual production and prosperity.