The Nigerian National Petroleum Company (NNPCL) has loaned a total of N220.495 billion to its three refineries for various purposes, including Quick Fix Maintenance projects and tax obligations. According to the company's 2025 Audited Financial Statement, the Kaduna Refining & Petrochemical Company Limited received N77.588 billion, while Port Harcourt Refining Company Limited got N2.58 billion and Warri Refining & Petrochemical Company Limited got N113.327 billion.
The loans were provided to support the refineries' maintenance and operational needs. Specifically, the loan to Kaduna Refining & Petrochemical Company Limited was used to finance invoice payments and tax obligations relating to the Quick Fix Maintenance project. As of the reporting date, the facility had an undrawn balance of N56 billion.
The NNPCL also disclosed that it had signed a Memorandum of Understanding (MoU) with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, to collaborate on the completion and operation of the Port Harcourt and Warri Refineries. The MoU aims to support the restoration of refining capacity, improve operational efficiency, and enhance domestic petroleum product supply within Nigeria.
In addition to the refinery loans, the NNPCL reported that it had converted an outstanding intercompany loan balance of N9.104 trillion and N1.660 trillion between NNPC Limited and NIDAS Shipping Services Limited to an investment. This conversion was done after the conclusion of all legal formalities, pursuant to the 2021 Technical Management Committee (TMC) approval.
The NNPCL also provided a loan of N211.6 billion to NNPC Energy Services Limited (Enserv) for various projects, including the Keana drilling campaign, Chad Basin re-entry, and 3D Seismic acquisition projects. Furthermore, the company granted a N473.8 billion loan to NNPC Gas Infrastructure Company Limited (NGIC) to fund the Nigeria-Morocco Gas Pipeline cash call commitments, equity injection to AGPC, and finance the AKK Pipeline Project.
The NNPCL reported that the federal government owes it N11.2 trillion, which is considered an expected loss allowance for FGN receivables. The company applies the IFRS 9 general model for measuring expected credit losses, which uses a three-stage approach in recognising the expected loss allowance for FGN receivables.
The company's financial statements also noted that the Presidential Executive Order 9 signed by President Bola Ahmed Tinubu on 18 February 2026, titled “Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity”, still had a financial impact on the company. However, the financial impact of the Executive Order and proposed MoUs with two Chinese engineering firms could not yet be reliably estimated.
Key points
- NNPCL loans N220bn to three refineries for maintenance and tax obligations
- Federal government owes NNPCL N11.2 trillion
- NNPCL signs MoU with Chinese companies to support refinery operations
