The Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, has declared that the re-opening of the Port Harcourt Refinery and Petrochemical Company was an enormous waste of sources.
Ojulari, who spoke on Wednesday on the ongoing 2026 Nigerian International Energy Summit, mentioned the nationwide oil firm presently lacks the capability to function refineries profitably.
He famous that for refineries to operate successfully, there should be satisfactory financing, competent Engineering, Procurement and Construction (EPC) contractors, in addition to environment friendly operations and upkeep capability.
The Port Harcourt Refinery, which was rehabilitated at a value of $1.5 billion underneath the management of former NNPC GCEO, Mele Kyari, was reopened in November 2024 after about three years of rehabilitation. However, it was shut down in May 2025 resulting from sustained {financial} losses.
Ojulari defined that after learning the refinery’s operations for a number of months, it turned evident that the ability was working at an enormous 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 mentioned.
“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 lose cash regardless of common crude provide.
“We had been pumping cargo into the refinery each month, however utilisation was round 50 to 55 per cent. Those cargoes have worth, and we had been shedding that worth. We had been spending some huge cash 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 mentioned NNPC is now in search of dependable companions with confirmed monitor data in refinery administration to function the nation’s refineries.
“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 plans to enhance oil manufacturing, Ojulari expressed optimism that the 1.8 million barrels per day manufacturing goal for 2026 is achievable.
He described the Federal Government’s 2025 price range benchmark of two.06 million barrels per day as overambitious, noting that common manufacturing stood at about 1.7 million barrels per day final 12 months.
“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 defined.
“One of the {financial} issues Nigeria confronted final 12 months was over projection. We over projected manufacturing and, by extension, income.
“By the center of the 12 months, we ran right into a disaster. Oil costs had been decrease and manufacturing was additionally beneath projections, but authorities companies had already made spending plans based mostly on these assumptions. These issues have far-reaching penalties.
“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 mentioned.
