The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Bayo Ojulari, has said operating Nigeria’s state-owned refineries amounted to a wasteful venture that drained public funds.
Ojulari made the disclosure in Abuja during a fireside chat titled “Securing Nigeria’s Energy Future” at the Nigeria International Energy Summit 2026.
He explained that despite strong political pressure to keep the refineries running, the facilities were recording significant financial losses.
He said public anger over the huge investments in the refineries had heightened expectations, placing the company under extreme pressure to sustain operations.
However, he noted that a commercial review revealed the plants were operating at “monumental loss” to the country.
According to him, large sums were being spent on operations and contractors without corresponding value, resulting in continued financial leakage rather than recovery.
Ojulari added that while losses may occur during investment phases, viable projects usually provide a clear path to recovery—an outlook he said was absent in the case of the refineries.
He disclosed that NNPC subsequently halted refinery operations to conduct a reassessment and determine whether reopening would be commercially justifiable.
The NNPC chief further noted that crude processed at the Port Harcourt refinery yielded only mid-grade products whose combined value was lower than the input cost, reinforcing the decision to suspend operations.
