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By Adewale Sanyaolu
For the first time in decades, after losses and failed turnarounds, the Nigeria National Petroleum Company (NNPC) Limited admitted it lacks the operational capacity to run modern refineries profitably — and is now seeking foreign operators with equity stakes.
Speaking at a fireside chat with the topic: “Securing Nigeria’s Energy Future” at the ongoing Nigerian International Energy Summit 2026 in Abuja, the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, said the decision to halt refinery operations was driven by hard commercial realities, not politics.
“When we assessed the refineries, it was clear they were destroying value,” he said. “Every barrel processed was running at a loss.”
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According to him, refinery utilisation hovered between 40 and 50 per cent, while operating costs, crude supply losses and contractor payments continued to rise.
“The result was a system that converted valuable crude oil into low-value products at a net loss to the country.
“The more we processed, the more money Nigeria lost,” he said.
