At a recent company meeting, Group Chief Executive Officer of NNPCL, Bayo Ojulari, disclosed critical insights into the underperformance of the Port Harcourt Refinery, describing “massive monthly losses” and operational inefficiencies that have plagued the facility.
Refinery Losing Up to ₦500 Million Monthly
Ojulari revealed that when he began reviewing refinery operations, he discovered that about 50,000 barrels of crude were being fed into the Port Harcourt Refinery, yet output was less than 40% of what was expected.
This inefficient conversion rate translated into a staggering monthly loss of between ₦300 million and ₦500 million across NNPCL’s refineries . Notably, this points to enormously wasted potential in crude-to-product yield, triggering urgent reassessment.
Maintenance Challenges and Strategic Pause
Describing the conditions as akin to “an old car parked for years without greasing,” Ojulari said that despite significant investments, the aging refinery infrastructure required extensive repairs and upgrades. In some cases, fixing one issue revealed or triggered another, complicating operational recovery . Given the financial drain, Ojulari said NNPCL decided to pause refinery operations, opting to restructure sustainably rather than continue the unsustainable losses.
Review of Strategy & Partnerships Underway
In mid-year remarks at the OPEC seminar in Vienna, Ojulari emphasized that a comprehensive strategy review is underway, expected to conclude before the end of 2025. He stated that “all options are on the table,” including potential sale or privatization of the refineries—although any decision will hinge on the outcomes of the technical and financial assessments.
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Public Pushback and Stakeholder Pressure
The GCEO’s bold moves have attracted criticism. Oil marketers, notably the Independent Petroleum Marketers Association of Nigeria (IPMAN), demanded immediate rehabilitation of the Port Harcourt facility or for Ojulari to resign.
The facility, shut down on May 24, 2025, for just 30 days of scheduled repairs, had seen over 80 days of inactivity by August, prompting concerns over stalled progress and massive job losses.
Meanwhile, advocacy groups and host communities questioned the shutdown, calling for transparency and warning that the pause could be a pretext for asset disposal. Yet, several official statements in July 2025 clarified that sale is not being actively pursued; rather, NNPCL has suspended any move to sell the refinery and continues to explore technical partnerships to upgrade and complete rehabilitation.
