Bayo Ojulari, Group Chief Executive Officer of NNPC Limited, has said the corporation lacks the capacity to run a refinery, describing the reoperationalisation of the Port Harcourt Refinery and Petrochemical Company as a major waste of resources.
NNPC
Ojulari made the remarks on Wednesday, February 4, while speaking at the ongoing 2026 Nigerian International Energy Summit.
He said effective refinery operations require adequate financing, competent Engineering, Procurement and Construction contractors, as well as strong operational and maintenance capacity, conditions he said NNPC does not currently meet.
The Port Harcourt Refinery, rehabilitated at a cost of about $1.5 billion under the leadership of former NNPC Group Chief Executive Officer Mele Kyari, was reopened in November 2024 after nearly three years of rehabilitation. However, the facility was shut down again in May 2025 following sustained financial losses.
Ojulari said a detailed review of the refinery’s operations showed that it was operating at a significant loss.
“The first thing that became clear was that we were running at a monumental loss to Nigeria. We were just wasting money. I can say that confidently now,” he said.
“So the first decision I had to make was to stop the rot by shutting it down and then quickly recalibrating to see what could be done.” He questioned how the refinery continued to post losses despite receiving regular crude supply.
“We were pumping cargo into the refinery every month, but utilisation was around 50 to 55 per cent. Those cargoes have value, and we were losing that value.
“We were spending a lot of money on operations and contractors. But when you look at the net outcome, we were just leaking value, and there was no clarity on how to turn those losses into positive returns,” he added.
Ojulari said NNPC is now seeking reliable partners with proven experience in refinery management to operate Nigeria’s refineries.
“To make a refinery work, you need three things,” he said. “First, financing to support operations. Second, a competent EPC contractor. Third, world-class operational capacity to run the refinery.”
According to him, NNPC’s current strategy, as approved by its board, is to partner with experienced refinery operators rather than contractors.
“We are not looking for contractors. We are not looking for O&M service providers. We are looking for an entity that actually runs refineries,” he said. He added that the successful operation of the Dangote Refinery had reduced the urgency to rush decisions on reviving government-owned refineries.
“There was a lot of pressure about continuity, but we were not under that pressure. And thank God for Dangote Refinery. Thank God. Whether you love Dangote or hate him, thank God.
“Thank God he is a Nigerian and not someone from another continent. Despite everything, that gave us breathing space because we now have a refinery that is working,” he said.
On oil production, Ojulari expressed optimism that Nigeria could reach 1.8 million barrels per day in 2026. However, he described the Federal Government’s 2025 budget benchmark of 2.06 million barrels per day as overambitious, noting that average production in the previous year was about 1.7 million barrels per day.
“For this year, we have a target of two million barrels per day, but the budget is based on about 1.8 million barrels per day. So we are not overcommitting,” he said.
“One of the financial problems Nigeria faced last year was overprojection. We overprojected production and revenue, and by mid-year, oil prices were lower while production was below projections. Yet spending plans had already been made based on those assumptions. That has far-reaching consequences,” he said.
Ojulari said credible and realistic production planning must be taken seriously to prevent future fiscal challenges.
