NNPC Shuts Refineries Over Heavy Losses, Poor Commercial Viability — Ojulari
The Group Chief Executive Officer (GCEO) of the Nigeria National Petroleum Company (NNPC Ltd.), Engr. Bayo Ojulari, has explained why operations at the country’s government-owned refineries were suspended.
Nigeria has four refineries — two in Port Harcourt, and one each in Warri and Kaduna — with a combined installed capacity of 445,000 barrels per day (bpd). The Port Harcourt facilities account for 210,000 bpd, while the Kaduna and Warri refineries have capacities of 110,000 bpd and 125,000 bpd, respectively.
Speaking on the sidelines of the 9th Nigeria International Energy Summit (NIES 2026), Ojulari said the plants were shut because they were no longer commercially viable in their current state.
According to him, the availability of crude oil feedstock did little to improve performance, as the refineries were operating at only 50 to 55 per cent capacity, a level he described as unsustainable.
He noted that operating costs continued to rise amid declining efficiency, while the quality of refined products remained poor, resulting in substantial financial losses.
“The first thing that became clear is that we were running at a monumental loss to Nigeria. We were just wasting money. So the first decision that I had to make was to stop the rot and quickly recalibrate, reassess, and see what we can do,” Ojulari said.
“We are pumping cargo every month into the refineries. Utilisation of those cargoes was maybe about 50 to 55 per cent. That cargo is highly valued.
“We are spending a lot of money on operations and contractors, but when you look at the net position, we are leaking a lot of value, and there was no clarity on any plan to turn those losses into gains,” he added.
Ojulari further disclosed that the company plans to release portions of equity to long-term global investors to ensure sustainability.
“We are not selling Nigeria. But we are open to selling some equity, as much as required, to secure sustainability. Our solution is to put a sustainable structure in place, one where the refinery can finance itself and run like a proper business,” he said.
