The Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, has condemned the controversial reopening of the Port Harcourt Refinery, declaring that the entire exercise amounted to a humongous waste of national resources.
Ojulari spoke on Wednesday at the ongoing 2026 Nigerian International Energy Summit, where he admitted that the national oil company currently lacks the capacity to operate refineries profitably.
According to him, refinery operations can only succeed with strong financing, competent Engineering, Procurement and Construction (EPC) contractors, and world-class operational and maintenance capacity — elements he said were clearly missing.
The Port Harcourt Refinery, rehabilitated at a cost of $1.5 billion under the leadership of former NNPC GCEO, Mele Kyari, was reopened in November 2024 after nearly three years of repairs. However, it was shut down again in May 2025 following sustained financial losses.
Ojulari said a review of the refinery’s operations revealed alarming inefficiencies and heavy losses.
“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.
“So the first decision I had to make was to stop the rot by shutting it down and then quickly recalibrating to see what could be done.”
He questioned how the refinery continued to bleed financially despite consistent crude supply.
“We were pumping cargo into the refinery every month, but utilisation was around 50 to 55 per cent. Those cargoes have value, and we were losing that value. We were spending a lot of money on operations and contractors.
“But when you look at the net outcome, we were just leaking value, and there was no clarity on how to turn those losses into positive returns,” he added.
Ojulari disclosed that NNPC is now exploring partnerships with reputable operators who have proven experience in refinery management.
“To make a refinery work, you need three things. First, you need financing to support operations and activities. Second, you need a competent EPC contractor that can deliver world-class projects. Third, you need world-class operational capacity to run the refinery”.
On oil production, the NNPC chief expressed confidence that Nigeria’s 1.8 million barrels per day production target for 2026 is realistic.
He described the Federal Government’s 2025 budget benchmark of 2.06 million barrels per day as overly ambitious, noting that average production hovered around 1.7 million barrels per day last year.
“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 explained.
“One of the financial problems Nigeria faced last year was over projection. We over projected production and, by extension, revenue.
“By the middle of the year, we ran into a crisis. Oil prices were lower and production was also below projections, yet government agencies had already made spending plans based on those assumptions. These things have far-reaching consequences.
“That is why having a credible production plan should not just be a box-ticking exercise. It is something we must all take seriously,” he said.
