By Kalu Obasi Benjamin
The head of NNPC Limited, Engr. Bayo Ojulari, has openly admitted that the company currently lacks the technical and financial ability to run refineries at a profit. He described the recent attempt to restart the Port Harcourt Refinery as a “monumental loss” and a waste of resources. Despite a $1.5 billion rehabilitation effort, the facility was shut down again in May 2025 because it was losing value and failing to turn a profit.
Ojulari explained that while the refinery was receiving regular supplies of crude oil, it was only operating at about 50% capacity. This inefficiency meant that the company was essentially “leaking” money on expensive contractors and operations without getting a good return. Consequently, the decision was made to stop operations entirely to prevent further financial damage to the country.
To fix this, the NNPC is changing its strategy. Instead of hiring contractors to simply maintain the machines, they are now looking for experienced international partners to take over and actually run the refineries. Ojulari believes that for a refinery to succeed, it needs a combination of strong private financing, competent engineering, and world-class management that the government-owned company currently does not possess.
The GCEO also noted that the success of the private Dangote Refinery has taken the “pressure” off the government. He expressed gratitude for Dangote’s facility, stating that it provides a necessary safety net for Nigeria’s fuel needs. This “breathing space” allows the NNPC to be more careful and less rushed in finding the right partners to revive the state-owned plants.
Regarding oil production, Ojulari offered a reality check on the national budget. While the government hoped for over 2 million barrels per day, he warned that such targets are overambitious. He suggested that 1.8 million barrels is a more realistic goal for 2026, cautioning that overestimating production leads to budget shortfalls and fiscal crises when revenues don’t match expectations.
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