The Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, has described the reopening of the Port Harcourt Refinery and Petrochemical Company as a significant waste of resources.
Speaking on Wednesday at the 2026 Nigerian International Energy Summit, Ojulari stated that the national oil company currently lacks the capacity to operate refineries profitably. He emphasised that successful refinery operations require adequate financing, competent Engineering, Procurement, and Construction (EPC) contractors, and efficient operations and maintenance systems.
The Port Harcourt Refinery, which underwent a $1.5 billion rehabilitation under former NNPC GCEO Mele Kyari, was reopened in November 2024 after three years of renovation but was shut down in May 2025 due to sustained financial losses.
Ojulari revealed that a detailed review of the refinery’s operations showed it was operating at a massive loss. “The first thing that became clear was that we were running at a monumental loss to Nigeria. We were just wasting money. I can say that confidently now,” he said.
He added that despite a regular supply of crude, refinery utilization remained low, at around 50 to 55 percent. “Those cargoes have value, and we were losing that value. We were spending a lot of money on operations and contractors, but the net outcome was just leaking value with no clarity on how to turn those losses into positive returns,” he said.
Ojulari explained that NNPC is now seeking reliable partners with proven experience in refinery management to operate the country’s refineries. “To make a refinery work, you need three things. First, financing to support operations. Second, a competent EPC contractor to deliver world-class projects. Third, world-class operational capacity to run the refinery,” he stated.
On oil production, Ojulari expressed optimism about achieving the 1.8 million barrels per day target for 2026, describing the 2025 budget benchmark of 2.06 million barrels per day as overambitious. He noted that Nigeria’s average production last year was about 1.7 million barrels per day.
“For this year, we have a target of two million barrels per day, but the budget is based on about 1.8 million barrels per day. So we are not over-committing,” he said. Ojulari warned that over-projection of production and revenue had serious consequences, citing the financial challenges faced by government agencies last year when oil prices and production fell below expectations.
“Having a credible production plan should not just be a box-ticking exercise. It is something we must all take seriously,” he concluded
