The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Bayo Ojulari, has defended the decision to halt operations at the country’s four state-owned refineries, describing previous spending as a waste of public resources.
Speaking at the Nigeria International Energy Summit (NIES) in Abuja, Nigeria, Ojulari stated that the move was an economic necessity to stop “value destruction.”
Okay News reports that an internal commercial review revealed the refineries were draining scarce resources without any prospect of profitability. Nigeria, Africa, owns four refineries located in Port Harcourt, Rivers State; Warri, Delta State; and Kaduna, Kaduna State, with a total installed capacity of 445,000 barrels per day. Despite their capacity, the facilities have historically operated far below optimal levels.
Ojulari explained that the Nigerian National Petroleum Company Limited (NNPC Ltd), the national oil company of Nigeria, had transitioned from operational excellence to a culture of high-cost maintenance contracts. Between 2010 and 2023, the federal government reportedly spent over N11 trillion on refinery rehabilitation and turnaround maintenance. However, the country remained dependent on imported petrol and diesel, which strained foreign exchange reserves.
The NNPCL boss noted that the emergence of the Dangote Refinery, a massive private facility owned by Aliko Dangote, Africa’s richest businessman, has provided the country with the “breathing space” to rethink its strategy. He argued that halting operations was an act of discipline rather than a failure, allowing for a fundamental restructuring of the assets.
The new strategic direction for the refineries involves a shift from treating them as government projects to long-term businesses. Ojulari announced that the NNPC Ltd board has approved a model to bring in experienced global operators. This plan includes selling equity stakes to international firms to ensure they have “skin in the game” and provide world-class operational capacity.
, Bayo Ojulari, has defended the decision to halt operations at the country’s four state-owned refineries, describing previous spending as a waste of public resources.){kind=link}