The Group Chief Executive Officer of Nigerian National Petroleum Company (NNPC) Limited, Engr. Bayo Ojulari, has said that the re-operationalisation of the Port Harcourt Refinery and Petrochemical Company resulted in financial losses and described it as a waste of resources, officials said in Abuja.
The Port Harcourt Refinery, one of Nigeria’s state-owned oil refineries, was rehabilitated at an estimated cost of about $1.5 billion and reopened after nearly three years of rehabilitation under a previous NNPC leadership. The facility was subsequently shut down again following continued financial losses
NNPC Limited is Nigeria’s national oil company charged with managing the country’s hydrocarbon resources, including refining, production and commercial operations.
State-owned refineries in Nigeria have historically struggled with low utilisation, loss-making operations and extended shutdowns for maintenance and turnaround works.
Speaking at the 2026 Nigerian International Energy Summit, Engr. Bayo Ojulari said that a detailed review of the Port Harcourt Refinery’s operations revealed that the facility was operating at about 50 to 55 per cent capacity while incurring high operational and contractor costs, resulting in significant losses for the company.
Ojulari said, “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 noted that effective refinery operations require adequate financing, competent engineering and construction support and strong operational and maintenance capacity, which NNPC currently does not fully possess.
He added that the refinery’s utilisation and product value did not justify continued operations under the existing structure, leading to the decision to halt operations after assessing financial outcomes.
The NNPC chief also said the company’s board has approved a strategy to seek partnerships with experienced refinery operators rather than relying solely on contractors to run the country’s refineries.
The statement reflects the challenges facing Nigeria’s state-owned refining sector, which has struggled with underperformance and financial losses despite repeated investments in rehabilitation and turnaround maintenance.
Poor utilisation of refinery capacity has contributed to extended periods of shutdown and reliance on imported refined petroleum products.
Ojulari’s remarks also underscore a shift in NNPC’s approach toward engaging experienced partners to bring operational expertise to refinery management, aiming to improve efficiency and reduce recurring financial losses.
