The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari on Wednesday said that Nigeria’s state-owned oil refineries were draining billions in public funds with no path to profitability, explaining why his team pulled the plug on operations.
Ojulari laid bare the dire finances during a fireside chat at the Nigeria International Energy Summit 2026 in Abuja.
Speaking on “Securing Nigeria’s Energy Future”, he described a stark reality: refineries running at 50-55% capacity despite monthly crude injections, churning out low-value products while racking up huge operational costs.
“Nigerians were angry. A lot of money has been spent, and expectations were very high,” Ojulari said.
“The first thing that became clear… is that we were running at a monumental loss to Nigeria. We were just wasting money.”
With a background in upstream oil, Ojulari admitted he faced a steep learning curve upon taking office. But accountability demanded action.
A cording to him, his team’s review exposed the rot: no credible turnaround plan, just endless contractor bills and value leakage.
He noted that at Port Harcourt refinery, for instance, input crude yielded only mid-grade output worth far less than the cost.
Political pressure to keep the plants humming—for fuel supply continuity—was intense, he added.
Nigeria’s four refineries—two in Port Harcourt, plus Warri and Kaduna—have languished for decades, often at single-digit capacity despite billions spent on “turnaround maintenance” since 2015.
NewsQuest reports that Nigeria as Africa’s top oil producer has leaned heavily on imports as a result.
Ojulari’s candid admission signals NNPC’s pivot under the Petroleum Industry Act towards profit-driven decisions, even in sensitive domains like refining.
