NNPC CEO Ojulari reveals state-owned refineries ran at monumental loss, halting operations to curb waste and reassess commercial strategy

The Nigerian National Petroleum Company Limited has disclosed that the country’s state-owned refineries were operating at a monumental loss, prompting management to halt operations to prevent further value erosion.

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The announcement was made on Wednesday in Abuja by Group Chief Executive Officer Bayo Ojulari during the “Securing Nigeria’s Energy Future” session at the Nigeria International Energy Summit 2026.

Ojulari highlighted the scale of public expectations versus operational realities, stating that decades of investment had failed to produce proportional value.

“On the refineries, Nigerians were angry. A lot of money has been spent, and expectations were very high. So we were under extreme pressure,” he said.

Explaining the operational review conducted since his appointment, Ojulari noted that crude inputs consistently reached the refineries, yet utilisation remained around 50 to 55 per cent, resulting in significant financial leakage.

He described the situation as “wasting money” and “running at a monumental loss to Nigeria.”

The CEO also cited product quality issues at the Port Harcourt Refinery, which produced mid-grade outputs with limited commercial value relative to the crude processed.

He admitted that political pressures had historically compelled NNPC to maintain refinery operations to guarantee fuel supply, but said commercial discipline was necessary.

Nigeria’s four state-owned refineries—Port Harcourt (two plants), Warri, and Kaduna have for decades operated well below capacity despite billions spent on turnaround maintenance.

Past rehabilitation contracts, approved between 2015 and 2023, yielded minimal domestic refining output, forcing the country to rely heavily on fuel imports.

Ojulari’s decision to suspend refinery operations marks a notable shift towards commercial accountability under the Petroleum Industry Act.

“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.

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The CEO’s remarks offer rare transparency on the financial and operational challenges facing NNPC and underscore the need for strategic reforms to ensure sustainable energy production and value retention.