A Painful Truth: NNPCL Boss Admits Refineries Were Draining Nigeria’s Finances
Bayo Ojulari, Group CEO of NNPCL, made a startling revelation at the Nigeria International Energy Summit 2026 in Abuja. Speaking during a fireside chat titled “Securing Nigeria’s Energy Future,” he admitted that Nigeria’s state-owned refineries were operating at a “monumental loss” to the country. According to him, continuing to run them simply meant wasting national resources.
He acknowledged the public anger, especially after billions of dollars had been invested over the years with expectations that the refineries would guarantee local fuel supply. But when he assumed office, a deep internal review revealed a troubling financial reality: huge operational and contractor costs with very little value to show for it.
Ojulari explained that although crude oil was consistently supplied to the refineries, utilisation levels hovered between 50 and 55 percent. Even worse, the refined output—particularly at the Port Harcourt Refinery—was largely mid-grade, failing to justify the cost of refining. “We were simply leaking away value,” he said.
With no clear path to recovery, he took the difficult decision to suspend refinery operations to stop further financial drain. It was a move made despite political pressure to keep the refineries running in order to ensure fuel availability for Nigerians.
