News
NNPC Admits N13.2tn Loss in Idle Refineries, Promises Recovery
NNPC reveals N13.2tn spent on Port Harcourt, Warri, and Kaduna refineries in 2023–2024 with little output. CEO Bayo Ojulari vows to restore operations
The Nigerian National Petroleum Company Limited (NNPC) disclosed that Nigeria’s three state-owned refineries—Port Harcourt, Warri, and Kaduna absorbed an estimated N13.2tn in 2023 and 2024 for turnaround maintenance, operations, and bank charges, yet continued to operate at a loss.
Also read: NNPC Boss Praises Dangote Refinery as Vital Energy Stabiliser
NNPC’s Group Chief Executive Officer, Bayo Ojulari, described the facilities as a “monumental loss” to the nation during the Nigeria International Energy Summit 2026 in Abuja. He said the massive spending failed to produce commercially sustainable outcomes.
Financial records show that the refineries owed NNPC about N4.52tn in 2023, rising to N8.67tn in 2024, with Port Harcourt accounting for the largest share.
Despite regular crude feed, utilisation rates remained around 50–55%, and refinery operations failed to generate significant revenue.
Ojulari highlighted that prior efforts by former GCEO Mele Kyari to revive the refineries yielded limited results, leading the new management to halt operations temporarily for a comprehensive assessment.
“The first thing that became clear is that we were running at a monumental loss to Nigeria. We were just wasting money,” Ojulari said, stressing public frustration was justified.
The refineries, including the 60,000 bpd-capacity Port Harcourt plant, were briefly operational in late 2024 but shut down again shortly after. The Warri and Kaduna facilities also faced similar operational challenges.
Despite criticisms and calls from the private sector to sell the refineries, Ojulari insisted the plants will work again, signalling plans for a revival under his administration.
Also read: NNPC Confirms Refineries Ran at Monumental Loss
The disclosure underscores the urgent need for strategic management and sustainable solutions to Nigeria’s long-troubled state-owned refineries.
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