The Nigerian National Petroleum Company Limited (NNPC Ltd) ran the country’s state-owned refineries at monumental losses, leading to their shutdown, according to the company’s Chief Executive Officer, Bayo Ojulari, Peak Newspaper reports.
Ojulari disclosed this while explaining the rationale behind suspending refinery operations, stating that the facilities had become major sources of value leakage rather than revenue generation. He said continued operation of the refineries was economically unsustainable and posed a heavy financial burden on the national oil company.
According to the NNPC boss, the losses were driven by inefficiencies, high operating costs, aging infrastructure and poor output, making it impossible for the refineries to compete or break even under prevailing market conditions.
Ojulari added that the decision to shut down the refineries was taken in the interest of transparency and long-term value creation, as NNPC moves to reposition itself as a commercially viable energy company.
The revelation has reignited public debate over the management of Nigeria’s refineries, which have consumed billions of naira in maintenance costs over the years without consistent output.
NNPC maintains that ongoing reforms, including partnerships and rehabilitation efforts, are aimed at preventing a repeat of such losses in the future.
