The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Bayo Ojulari, has disclosed that Nigeria’s state-owned refineries were operating at a “monumental loss”, prompting his management team to halt operations to prevent further erosion of national value.
Ojulari disclosed this on Wednesday in Abuja during a fireside chat titled “Securing Nigeria’s Energy Future” at the Nigeria International Energy Summit 2026, offering rare insight into the commercial and operational challenges confronting NNPC’s refining assets.
According to him, public frustration over the refineries was justified, given the scale of public funds invested and the expectations placed on the facilities.
“On the refineries, Nigerians were angry. A lot of money has been spent, and expectations were very high. So we were under extreme pressure,” Ojulari said.
He admitted that refining was not his core area of expertise upon assuming office, having spent most of his career in the upstream segment of the oil and gas industry, but noted that accountability required rapid adaptation.
“My background is upstream, so I was on a vertical learning curve. You are accountable, so you must learn very quickly. Otherwise, there is no escape.
“The first thing that became clear, and I want to say this very clearly, is that we were running at a monumental loss to Nigeria. We were just wasting money,” he stated.
He revealed that NNPC was supplying crude cargoes to the refineries monthly, yet utilisation levels remained at 50–55%, leading to significant value leakage.
Decision to Halt Operations
As a result, Ojulari said the first major decision of his administration was to halt refinery operations to stem further losses and allow for a rapid reassessment.
“We decided to stop the refinery and do a quick check. We planned that if things were lined up, we would reopen and work on them,” he said.
He also highlighted quality challenges, citing the Port Harcourt Refinery, where crude inputs reportedly yielded mid-grade products that failed to justify their cost.
“The crude we were taking into Port Harcourt was producing mid-grade products. When you aggregate their value compared to what you put in, it was a waste,” he said.
Nigeria’s State-Owned Refinery Challenge
Nigeria’s four state-owned refineries Port Harcourt (two plants), Warri, and Kaduna have for decades operated far below capacity despite multiple turnaround maintenance exercises costing billions of dollars.
Between 2015 and 2023, successive administrations approved several rehabilitation contracts for refineries, yet domestic refining output remained negligible, forcing continued reliance on fuel imports.
Ojulari acknowledged the political sensitivity of the decision, noting long-standing pressure on NNPC to keep refineries running for fuel supply considerations.
“There were political pressures to keep the refinery product, lots of pressure. But when you have been trained for over 35 years to focus on commerciality and profitability, you can’t sleep with that,” he said.
