ABUJA: The Nigerian National Petroleum Company Limited (NNPC Ltd.) has disclosed that operations at the state-owned refineries were halted after internal reviews showed they were running at “monumental loss” and destroying value for the country.
The Group Chief Executive Officer of NNPC Ltd., Mr Bashir Ojulari, made the disclosure during a fireside chat on Securing Nigeria’s Energy Future at the ongoing Nigeria International Energy Summit (NIES 2026) in Abuja.
Ojulari said his management team moved quickly to review the refineries following public outrage over years of heavy investment with little return.
He noted that despite regular crude supply, utilisation remained between 50 and 55 percent, while operating and contractor costs continued to rise sharply.
“When we looked at the net outcome, it was clear we were leaking value with no realistic path to profitability,” he said, adding that political pressure to keep the refineries running was resisted to prevent long-term value destruction.
He explained that further analysis revealed the plants were producing mid-grade products whose value did not justify the quality of crude input, warning that continuing such operations would have entrenched losses for decades.
Ojulari described the emergence of the Dangote Refinery as timely, saying it had provided critical breathing space for Nigeria’s energy supply. He said NNPC had strengthened collaboration with the refinery while maintaining its role as supplier of last resort and promoting competition in the downstream sector.
On reform plans, the NNPC boss said the company would bring in experienced refinery operators as equity partners rather than contractors. He disclosed that discussions were ongoing with potential investors, including a major Chinese petrochemical firm, as part of efforts to build a sustainable, self-financing refinery system.
