By Ali Elias
The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Bayo Ojulari, has disclosed that the country was losing between $300 million and $500 million monthly while the Port Harcourt Refinery was running.
Ojulari, who assumed office on April 2, said the refinery was processing crude at a loss, producing less than 40 per cent of the crude pumped into it.
“When I resumed, one of the first priorities I focused on was the refinery. I did a quick review to see if we could quickly fix it,” he told leaders of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja yesterday. “What I found is that we were losing between \$300 million to \$500 million on a monthly basis in the refinery. We were pumping about 50,000 barrels of crude to go into the refinery. What was coming out was less than 40 per cent equivalent of what was coming in.”
Why the Refinery Was Shut Down
The Port Harcourt Refinery, which was restarted to wide applause in November 2024 by former NNPCL GCEO Mele Kyari, was shut down in May 2025 — barely a month after Ojulari took office.
He explained that the shutdown was necessary to halt losses and to develop a “sustainable and profitable arrangement” for Nigeria’s refining sector.
“The first thing we said was rather than continue to lose, let’s quickly stop and look for a way to put this refinery into a sustainably profitable venture,” he said.
Ojulari added that NNPCL had completed both technical and commercial reviews of the three state-owned refineries and concluded that the most viable way forward was to adopt the Nigeria LNG model — a public-private partnership.
“We’ve completed the commercial review for the Port Harcourt refinery and from that commercial review, we have come to the conclusion that the best way forward is to get a true professional refinery company to join us and co-operate with us,” he said.
Resistance and Pressure
The NNPCL boss acknowledged that the reforms had attracted backlash and even threats to his life.
“We are under attack. We will not budge to short-term pressure, as it will not be in the best interest of Nigerians. You cannot drive change without a price, and the transformation is tough,” he declared.
He stressed that President Bola Tinubu had given him a clear mandate to ensure Nigeria’s refineries operate sustainably and without political interference.
“Tinubu did not put pressure on me to go and do the wrong thing. The baseline was to go and ensure that whatever we’re doing, going forward, sustainably works,” Ojulari said.
PENGASSAN Backs Reform
President of PENGASSAN and the Trade Union Congress (TUC), Mr. Festus Osifo, pledged the union’s support for the NNPCL leadership, noting that stability in the oil sector was crucial for workers and the wider economy.
“At PENGASSAN, we assure you that we are solidly behind you. We will collaborate with you and your team to ensure the stability of the system,” Osifo said. “Today we are doing approximately 1.8 million barrels of crude. We believe that with capacity and experience, we can raise this to 2.6 million barrels per day next year.”
Between Kyari and Ojulari
Ojulari’s position marks a sharp contrast to that of his predecessor, Mele Kyari, who in November 2024 celebrated the refinery’s reopening as a “monumental achievement for Nigeria” and a sign of “a new era of energy independence.”
Now, nine months later, the plant is idle once again as NNPCL looks to chart a new course for its refineries through private sector participation.
Analysts say the development underscores the complexity of Nigeria’s refining challenge. With billions of dollars spent on rehabilitation over decades, success will likely hinge on moving beyond government-led management towards commercially viable partnerships.