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The Nigerian National Petroleum Company Limited (NNPC) has disclosed that the country’s state-owned refineries were running at severe financial losses, prompting management to halt their operations to prevent further economic damage.
NNPC Group Chief Executive Officer, Bayo Ojulari, made the disclosure while speaking at a recent industry engagement, where he offered a candid assessment of the company’s downstream challenges and the realities confronting domestic refining.
Ojulari said sustaining refinery operations under existing conditions was commercially indefensible, noting that the facilities consistently consumed more resources than the value they generated.
According to him, continuing production under such circumstances would have amounted to “knowingly bleeding the company,” with no clear path to profitability.
“We had a situation where operating the refineries meant losing money every single day,” Ojulari said.
“From a business standpoint, that was not sustainable, and it became necessary to stop operations rather than deepen the losses.”
Furthermore, he acknowledged public concerns over the billions of naira previously invested in refinery rehabilitation projects, stressing that the decision to suspend operations was not taken lightly.
However, he maintained that commercial discipline must guide NNPC’s actions as a limited liability company.
Ojulari also hinted at a broader shift in strategy, explaining that NNPC is now prioritising partnerships, asset optimisation and market-driven decisions over politically motivated operations.
He added that any future return of the refineries would depend on credible technical and financial frameworks capable of delivering value.
The disclosure has renewed debate over Nigeria’s long-struggling refining sector, which for decades failed to meet domestic fuel demand despite repeated turnaround maintenance efforts.
Analysts say Ojulari’s remarks signal a more transparent and business-focused posture by NNPC amid ongoing reforms in the oil and gas industry.
NNPC has yet to announce a definitive timeline for the revival of the refineries, but officials insist that future decisions will be guided strictly by economic viability rather than sentiment.
