US EditionNigeria: Why Nigeria's Refineries Failed
NNPC halted operations after refineries ran at 50-55% capacity with continual losses; new plans include partnering with global operators and selling equity to secure sustainability.
- During a fireside chat at NIES in Abuja on Wednesday, Bayo Ojulari, Group Chief Executive Officer of Nigerian National Petroleum Company Limited, announced halting state refinery operations after an internal review found monumental losses and no path to profitability.
- Decades of mismanagement and underinvestment left Nigeria's four major refineries, including Port Harcourt Refining Company, moribund despite a combined installed capacity of 445,000 barrels per day.
- Internal reviews found utilisation averaged between 50 and 55 per cent while operating and contractor costs rose, and Ojulari said, `But the reality was that we were just wasting money`.
- Seeking partners, NNPC will cede equity to experienced global operators for long-term success, amid talks with investors including a major Chinese petrochemical company inspecting a refinery, while Dangote Refinery's start allows reassessment.
- Amid political pressure, NNPC says its priority is to ensure refineries operate profitably and sustainably for decades, responding to public anger over past spending.
15 Articles
15 Articles
Ojulari: There Was Pressure To Keep Refineries Running Despite Monumental Losses
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, has disclosed that intense political pressure was mounted to keep Nigeria’s state-owned refineries running even though the facilities were operating at monumental losses. Ojulari said this pressure persisted despite internal findings that refinery operations were steadily eroding national value and running in monumental losses. He acknowledged tha…
Why Nigeria’s refineries failed
Under a new board-approved strategy, Mr Ojulari said the company is no longer looking for contractors to run its refineries but experienced global operators with proven track records. The post Why Nigeria’s refineries failed — Ojulari appeared first on Premium Times Nigeria.
NNPC Moves To Hand Refinery Operations To Proven Foreign Partners
Nigeria’s state-owned oil company, the Nigerian National Petroleum Company Limited (NNPC), has begun advanced discussions with foreign investors as it seeks to overhaul the operations of its long-struggling refineries through equity partnerships rather than outright sales. The company’s chief executive officer, Bayo Ojulari, disclosed that NNPC is engaging experienced refinery operators, including a Chinese petrochemical […] The post NNPC Moves …
NNPC chief praises Dangote refinery, says it provided relief during shutdown of state plants - TV360 Nigeria
Ojulari says private refinery gave Nigeria “breathing space” as NNPC reviews future of government-owned refineries….. Bayo Ojulari, group chief executive officer of the Nigerian National Petroleum Company Limited, has asked Nigerians to thank God for the Dangote refinery, saying it provided a “breathing space” when state-owned refineries were shut down. Ojulari made the remarks on Wednesday at the Nigerian International Energy Summit 2026. On Se…
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