Bayo Ojulari
Olamilekan Abayomi
Bayo Ojulari, the Group Chief Executive Officer of NNPC Limited, has revealed that the country’s state-owned refineries haven’t worked due to inadequate operational capacity and overemphasis on financing and contracting exploration, production, and construction (EPC) companies. He stated that NNPC lacks the capacity to operate refineries profitably and is seeking reliable partners with proven experience in refinery management to operate the country’s refineries.
Ojulari explained that effective refinery operations require adequate financing, competent EPC contractors, and strong operational and maintenance capacity – conditions NNPC presently doesn’t meet. He noted that previous attempts at rehabilitation focused on raising capital and awarding EPC contracts, neglecting long-term operational expertise.
The NNPC boss also revealed that the Port Harcourt Refinery, rehabilitated at a cost of $1.5 billion, was shut down in May 2025 due to sustained financial losses, with monthly crude oil cargoes yielding only 50-55% utilisation.
Ojulari emphasized that NNPC’s strategy involves partnering with credible operators who can bring technical expertise and operational efficiency to the refineries. He stated that the company is in discussions with potential partners to manage the refineries, which would help improve operational capacity and reduce dependence on imported refined products.
The decision to seek partnerships comes as Nigeria continues to grapple with fuel shortages and high prices, despite having several operational refineries in the country. The country’s refining capacity has been hampered by decades of neglect, corruption, and mismanagement.
NNPC has been under pressure to increase domestic refining capacity and reduce the country’s reliance on imported fuel. The company has set ambitious targets to increase production and achieve self-sufficiency in refined petroleum products.
The Port Harcourt Refinery shutdown has exacerbated the country’s fuel supply challenges, with many petrol stations experiencing shortages. NNPC has been forced to import refined products to bridge the supply gap.
Ojulari assured Nigerians that the company is working tirelessly to resolve the fuel supply challenges and achieve sustainable refining capacity. He emphasized that NNPC is committed to transparency and accountability in its operations.
The NNPC boss’s revelations have sparked debate about the country’s energy sector, with many calling for increased transparency and accountability in the management of the refineries. Some experts have suggested that privatization could be a viable option for improving the refineries’ performance.
As NNPC navigates the challenges facing the country’s refineries, Nigerians are watching closely to see how the company will address the issues and achieve its goals.
