The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Bayo Ojulari, has revealed that Nigeria’s state-owned refineries were operating at what he described as a “monumental loss,” forcing his management team to suspend operations to prevent further financial damage.
Ojulari made the disclosure on Wednesday in Abuja during a fireside chat, “Securing Nigeria’s Energy Future,” at the Nigeria International Energy Summit 2026, offering rare insight into the commercial realities facing the country’s refining assets.
He acknowledged widespread public frustration over the refineries, noting that billions of dollars have been invested over the years with little to show in output.
According to him, a detailed internal review showed that NNPC was supplying crude to the plants monthly, yet utilisation hovered around 50–55%, while operating and contractor costs continued to drain resources.
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“We were spending heavily but simply leaking value,” Ojulari said, adding that there was no clear pathway to reversing the losses — a key factor behind the decision to shut the facilities for reassessment.
He cited the Port Harcourt Refinery as an example, saying the crude processed often yielded lower-value products that did not justify the input costs.
Ojulari admitted the move was politically difficult, given longstanding pressure to keep refineries running for fuel supply reasons, but stressed that commercial sustainability had to take priority.
Nigeria’s four state-owned refineries — Port Harcourt, Warri, and Kaduna — have operated far below capacity for decades despite repeated and costly rehabilitation efforts.
Ojulari’s remarks mark one of the clearest acknowledgements yet that continuing operations under existing conditions was economically unsustainable.
The development signals a broader shift under the Petroleum Industry Act (PIA) toward stricter commercial discipline within NNPC, even in politically sensitive sectors like domestic refining.