…hails Dangote refinery as relief for Nigeria’s fuel supply
Stories by Seun Ibiyemi
The Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Bayo Bashir Ojulari, has outlined a radical new strategy focused on commercial discipline and attracting strategic global partners to restore profitability for Nigeria’s refineries.
Speaking at the Nigeria International Energy Summit (N.I.E.S) on Wednesday, Ojulari revealed that the state oil firm halted operations at its refineries after a clinical assessment showed they were eroding value rather than creating it.
Ojulari disclosed that upon taking office, his leadership team found that the refineries were operating at a mere 50 to 55 percent utilization despite consistent crude supply.
“We were pumping crude cargoes into the refineries every month, but we were destroying value because the feedstock often produced mid-grade products less valuable than the raw crude,” he explained.
Despite political pressure to keep the facilities running, Ojulari maintained that the rot had to be stopped to prevent further financial bleeding.
To fix the long-standing crisis, the NNPC boss identified three missing pillars: financing, competent engineering contractors, and world-class operational capacity.
He admitted that while past efforts focused on the first two, they neglected the actual management of the facilities.
He then added that the NNPC is now looking to relinquish equity to strategic investors including a major Chinese firm with one of the world’s largest petrochemical plants who will lead operations and help build local technical capacity.
Ojulari also lauded the Dangote Refinery for providing a breathing space for Nigeria’s fuel supply, describing the private facility as a vital partner in ensuring energy security.
Beyond refining, Ojulari addressed the broader African energy landscape, emphasizing that the continent’s transition must be equitable and people-centred.
With over 600 million Africans still lacking electricity, he argued that Africa cannot simply replicate Western models.
“Energy is the lifeblood of global peace and security,” Ojulari stated, noting that Nigeria, with 37 billion barrels of oil and 2.9 trillion cubic feet of gas, is poised to lead the continent’s industrialization.
He highlighted key infrastructure milestones, such as the Obiafu-Obrikom-Oben (OB3) and Ajaokuta–Kaduna–Kano (AKK) pipelines, as catalysts for economic growth.
He credited recent progress to the fiscal stability and policy liberalization initiated under the leadership of President Bola Tinubu.