NNPC Ltd admits it can’t run refineries

In a move that signaled a total surrender of the state’s refining ambitions to private expertise, the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, confessed that the national oil giant is simply not equipped to operate refineries at a profit.

Speaking at the 2026 Nigerian International Energy Summit, Ojulari characterized the recent attempt to restart the Port Harcourt Refinery as a massive financial drain, describing the operation as a monumental loss that forced him to shut it down just months after its high-profile reopening.

The $1.5 billion rehabilitation project, which was the crown jewel of the previous leadership's agenda, failed to live up to the hype. Ojulari revealed that even with a steady stream of crude oil, the plant could only manage a 50% utilization rate, effectively leaking value and wasting expensive cargoes every month.

He noted that the decision to stop the rot by mothballing the facility again in May 2025 was the only way to protect the country from further fiscal bleeding.

Speaking, the GCEO suggested that Nigerians should be grateful for the Dangote Refinery.

He credited the private facility with saving the country from a total fuel crisis and allowing the NNPC the luxury of time to rethink its strategy.

According to Ojulari, the presence of a functional, Nigerian-owned private refinery means the state is no longer under desperate pressure to keep its own failing machines running at any cost.

Moving forward, the NNPC is pivoting away from hiring contractors and maintenance crews.

The new mandate is to find seasoned international partners who can bring their own financing and world-class management to the table.

Ojulari emphasized that a refinery requires a specific brand of operational excellence that the NNPC currently does not possess, and the company will now focus on finding entities that actually run refineries rather than just servicing them.

Turning his attention to the national budget, Ojulari also cautioned against the overambitious production targets that have historically led to fiscal shocks.

While the government previously projected over 2 million barrels per day, the GCEO is anchoring 2026 expectations at a more conservative 1.8 million barrels per day.

He warned that the habit of over-projecting revenue based on impossible production numbers has far-reaching consequences for the economy, calling for a more realistic and grounded approach to Nigeria's energy future.