Why NNPC halted loss-making refineries, sought global partners for viability – Ojulari

The Nigerian National Petroleum Company Limited (NNPC Ltd) has stated that its suspension of operations at the country’s state-owned refineries followed a rigorous economic review, which concluded that continued production was destroying value and draining public funds.

NNPC Ltd’s Group Chief Executive Officer, Mr. Bayo Ojulari, disclosed this on Wednesday, explaining the company could no longer justify running facilities with no realistic path to profitability.

Despite years of heavy investment and public pressure, performance remained poor, marked by low capacity utilization and rising costs.

“There was anger and disappointment because expectations were high and so much money had been invested,” Ojulari said. “But the facts showed that keeping them on was simply destroying value.”

He detailed that while crude oil feedstock was supplied consistently, the plants operated at barely half their installed capacity, and the value of the refined products was often lower than the crude oil processed.

Nigeria’s four refineries—Port Harcourt, Warri, and Kaduna—have a combined installed capacity of 445,000 barrels per day but have struggled for decades with ageing infrastructure and operational inefficiencies.

Ojulari said the current management’s first major decision was to shut down the refineries for a comprehensive review, despite political pressure.

“When you are trained to think commercially, you cannot ignore profitability,” he stated.

He noted that the operational commencement of the Dangote Petroleum Refinery provided critical breathing space for NNPC to reassess its strategy. Looking forward, under a new board-approved plan, NNPC intends to bring in experienced global refinery operators as equity partners to ensure shared risk and technical competence.

“We are not selling off Nigeria,” Ojulari clarified. “But we are open to selling enough equity to bring in partners with proven expertise and commitment.” He confirmed discussions with potential investors are ongoing.

Ojulari stressed that the company’s priority has shifted from restarting refineries at any cost to ensuring they operate as commercially viable, self-sustaining businesses. “What matters is not just that the refinery works,” he said. “It must work sustainably.”

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

See author's posts