Nigeria Refineries Run at ‘Monumental Loss’ – NNPC Boss

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bayo Ojulari, has admitted that Nigeria’s state-owned refineries were running at a “monumental loss,” forcing his team to halt operations to stop further financial damage.

Speaking at the Nigeria International Energy Summit 2026 in Abuja, Ojulari said public frustration was justified given the billions spent on the refineries over the years.

“On the refineries, Nigerians were angry. A lot of money has been spent, and expectations were very high. So we were under extreme pressure,” he noted.

Ojulari, who built his career in the upstream sector, said he had to quickly adapt to the refining business.

“My background is upstream, so I was on a vertical learning curve. You are accountable, so you must learn very quickly. Otherwise, there is no escape,” he explained.

A review of operations revealed heavy losses. “The first thing that became clear is that we were running at a monumental loss to Nigeria. We were just wasting money,” Ojulari said, adding that utilisation levels hovered around 50–55 per cent despite continuous crude supply.

He stressed that the refineries lacked 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 said. His administration’s first major decision was to suspend operations for reassessment.

Ojulari cited poor product quality as another issue. “The crude we were taking into Port Harcourt was producing mid-grade products. When you aggregate their value compared to what you put in, it was a waste,” he explained.

He acknowledged political pressure to keep the refineries running, but insisted profitability must come first. “There were political pressures to keep the refinery product. But when you have been trained for over 35 years to focus on commerciality and profitability, you can’t sleep with that,” he said.