The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Bashir Bayo Ojulari, has stated that Nigeria’s state-owned refineries were operating at a “monumental loss,” compelling his management to shut them down.
Ojulari made this revelation during a fireside chat titled “Securing Nigeria’s Energy Future” at the Nigeria International Energy Summit 2026 in Abuja on Wednesday.
He acknowledged the justified public anger over the refineries, noting the vast sums of money invested and the high expectations. “On the refineries, Nigerians were angry. A lot of money has been spent, and expectations were very high. So we were under extreme pressure,” Ojulari said.
Admitting his background is in the upstream sector, Ojulari stated he had to rapidly learn about refining upon assuming office. The financial review his team conducted revealed a stark reality.
“The first thing that became clear… is that we were running at a monumental loss to Nigeria. We were just wasting money. I can say that confidently now,” he declared.
He detailed that NNPC was pumping crude monthly into refineries operating at only 50–55% utilisation, leading to significant value destruction. “We were spending a lot of money on operations, a lot of money on contractors. But when you look at the net, we were just leaking away value,” Ojulari explained.
A critical issue was the absence of a credible recovery plan. “Sometimes you make a loss during investment, but you have a line of sight to recovery. That line of sight was not clear here,” he added.
Consequently, his administration’s first major decision was to halt operations. “We decided to stop the refinery and do a quick check. We planned that if things were lined up, we would reopen and work on them,” Ojulari said.
He cited the Port Harcourt Refinery as an example, where the crude processed yielded only mid-grade products, resulting in a net loss.
Ojulari acknowledged facing political pressure to keep the refineries running to maintain fuel supply but emphasised his commitment to commercial discipline. “When you have been trained for over 35 years to focus on commerciality and profitability, you can’t sleep with that,” he stated.
