NNPC lacks capacity to operate refineries profitably, says GCEO Ojulari
The Nigerian National Petroleum Company Limited (NNPC Ltd) has acknowledged that it currently lacks the technical and operational capacity to run Nigeria’s state-owned refineries profitably, the Group Chief Executive Officer, Bayo Ojulari, has said. Ojulari made the disclosure during a fireside chat on “Securing Nigeria’s Energy Future” at the 2026 Nigerian International Energy Summit in Abuja, where he offered a candid assessment of the performance of the nation’s refinery assets under NNPC management. According to the NNPC boss, despite significant investments and rehabilitation efforts, Nigeria’s four refineries — Port Harcourt I and II, Warri, and Kaduna — have consistently operated at a loss. He explained that the Port Harcourt Refinery, which was reopened after about $1.5 billion was spent on rehabilitation, continued to run at a significant deficit and was shut down again in May 2025 to stop further losses. Ojulari said effective refinery operations require three key components: adequate financing, competent engineering and construction partners, and world-class operational capacity — conditions he acknowledged NNPC currently does not possess. He said his team concluded that continuing refinery operations under the existing structure amounted to “wasting money,” noting that utilisation rates were low and output failed to justify the heavy resource outlays.
To address this challenge, Ojulari said NNPC is now seeking equity partnerships with experienced global refinery operators that have proven capacity to manage and run such facilities, instead of merely awarding engineering contracts. He explained that such partnerships would help bring in the necessary technical know-how to operate the refineries sustainably, as well as build local competence over time. The GCEO also referenced the success of the Dangote Refinery, saying that its effective operations have eased pressure on NNPC and highlighted the importance of technical expertise in profitable refining. Analysts and industry stakeholders say that Nigeria’s decades-long struggle to revive its state refineries has drained billions of dollars and underscored the broader challenges of operating complex energy infrastructure in a commercially disciplined way.
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