Bayo Ojulari Reveals Political Pressure to Keep Nigeria’s Refineries Operating Despite Heavy Losses

Bayo Ojulari, the Group CEO of Nigerian National Petroleum Company (NNPC) Limited, has disclosed that the Warri, Port Harcourt, and Kaduna refineries were shut down primarily due to their unsustainable financial losses.

Speaking at the ongoing Nigerian International Energy Summit (NIES), Ojulari explained that despite the significant losses, there was political pressure to keep these refineries operational.

The NNPC had announced the closure of the Port Harcourt Refining Company (PHRC) in May 2025 for maintenance, while operations at the Warri and Kaduna refineries were halted for rehabilitation.

In November of the same year, the company revealed plans to collaborate with private refinery operators in an effort to revamp the aging facilities after conducting a review of their performance.

Addressing the rationale behind these closures, Ojulari revealed that upon his appointment, his leadership team sought to understand the situation within the refineries. “What became clear was that we were operating at a monumental loss to Nigeria. We were simply wasting money,” he stated.

He explained that the refineries were producing only about 50-55% of their capacity, despite the country pumping crude into them monthly. “We were spending heavily on operations and contractors, yet we were losing immense value—money was leaking away,” Ojulari added.

The NNPC chief emphasized that there was no clear strategy to turn these losses into profits, which made the future of the refineries uncertain. “Our immediate plan was to halt operations briefly to assess the situation. If everything aligned properly, we would consider reopening and refurbishing them,” he said.

Regarding the Port Harcourt refinery, Ojulari revealed that it was producing mid-grade products, which he described as wasteful. “We realized that the crude processed in Port Harcourt was producing value-depleting mid-grade products,” he explained.

He noted that there was political pressure to keep the refineries running, given that the NNPC is often seen as the last resort supplier of petroleum products in Nigeria. However, Ojulari emphasized that his leadership was not under that pressure, prioritizing the financial health of the company over political considerations.

Culled from [The Cable] excluding reworked headline