NNPCL loaned refineries N220.5bn for maintenance, tax obligations

The Nigerian National Petroleum Company Limited (NNPCL) says it provided loans totalling N220.495bn to its three refineries in 2025 to support maintenance activities, tax obligations and other operational commitments.

The disclosure was contained in the company’s 2025 Audited Financial Statements.

According to the report, Kaduna Refining and Petrochemical Company Limited received N77.588bn, while Port Harcourt Refining Company Limited got N2.58bn and Warri Refining and Petrochemical Company Limited received N113.327bn.

The company said the facilities were largely tied to its Quick Fix Maintenance projects and other obligations connected to refinery operations.

NNPCL disclosed that a N133.5bn facility was granted to the Kaduna refinery to finance invoice payments and tax obligations related to its Quick Fix Maintenance project.

It said N56bn of the facility remained undrawn as of the reporting date.

For the Warri refinery, the company said N104.8bn was provided to finance tax payments linked to its Quick Fix Maintenance project, with part of the facility still undrawn as of December 31, 2025.

The Port Harcourt refinery also received a loan facility to settle outstanding invoices owed to NNPC Engineering and Technical Company (NETCO) and the Egyptian Projects Operation and Maintenance (EPROM) under a nine-month operations and maintenance contract for the Area 5 Plant.

The disclosures came after NNPCL signed a memorandum of understanding with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, for a potential Technical Equity Partnership involving the Port Harcourt and Warri refineries.

According to the audited accounts, the proposed arrangements are expected to support the restoration of refining capacity, improve operational efficiency, reduce ongoing losses and boost domestic petroleum product supply.

The company said the agreements were still subject to negotiations, technical evaluations, due diligence and the execution of definitive agreements as of the date the financial statements were authorised.

FG owes NNPCL N11.2tn

The audited accounts also showed that the Federal Government owes the NNPCL Group N11.2tn in outstanding receivables.

The company said the amount represented payments due from the Federal Government and had been assessed under the IFRS 9 expected credit loss framework.

“The receivable has been assessed for impairment and has remained in stage 1,” the report stated.

NNPCL also disclosed that N25.7bn in interest was outstanding as of December 31, 2025 on some of its loan facilities.

It said N211.6bn owed by NNPC Energy Services Limited was linked to the Keana drilling campaign, Chad Basin re-entry and other 3D seismic acquisition projects.

Another N473.8bn facility to NNPC Gas Infrastructure Company Limited was granted to finance Nigeria-Morocco Gas Pipeline cash-call commitments, equity injection into AGPC and the Ajaokuta-Kaduna-Kano (AKK) Pipeline project.

The company further disclosed that the financial impact of Presidential Executive Order 9, signed by President Bola Tinubu on February 18, 2026, had not been fully determined when the financial statements were authorised.

Consequently, it said no adjustment had been recognised in the 2025 financial statements in respect of the order.

NNPCL added that the financial implications of its proposed agreements with the two Chinese engineering firms could not yet be reliably estimated.