NNPC Releases Details on Why It Shut Down 4 Refineries
- NNPC Limited decided to stop all operations at Nigeria’s four refineries for months now
- The decision, Bayo Ojulari, NNPC boss, said, was due to the refineries' operation at just 50–55% capacity
- NNPC has kicked off plans to attract long-term global investors and is already in discussion with China
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has provided fresh details on why it shut down the country’s four government-owned refineries.
Speaking on the sidelines of the 9th Nigeria International Energy Summit (NIES 2026), Bayo Ojulari, the Group Chief Executive Officer of NNPC Ltd, cited persistent commercial losses, low utilisation rates and rising operating costs as the reasons for the decisions
Source: Twitter
NNPC: Why we shut down 4 refineries
Nigeria has four refineries, two in Port Harcourt and one each in Warri and Kaduna, with a combined installed capacity of 445,000 barrels per day (bpd).
The Port Harcourt plants have a combined capacity of 210,000 bpd, while the Warri and Kaduna refineries are designed to process 125,000 bpd and 110,000 bpd, respectively.
Ojulari noted that the refineries were shut down because they were no longer commercially viable in their current condition.
He explained that although crude oil was supplied to the plants, they were operating at only 50 to 55 percent capacity, a level he described as unsustainable.
Ojulari said operating costs continued to rise while the quality of refined products remained poor, resulting in significant financial losses., Punch reports.
According to him, NNPC was pumping crude cargoes into the refineries every month, but only about half of those volumes were effectively utilised, leading to waste and value leakage.
Ojulari said:
“The first thing that became clear is that we were running at a monumental loss to Nigeria. We were just wasting money."
Adding that heavy spending on operations and contractors did not translate into positive returns.
Source: Getty Images
He noted that the decision to halt operations was aimed at stopping further losses and reassessing options for the refineries’ future.
The Sun reports that Ojulari said there was no clear plan at the time to turn the losses into profits under the existing operational structure.
Looking ahead, the NNPC chief said the company is considering releasing parts of its equity in the refineries to attract long-term global investors as part of efforts to secure sustainability.
He stressed that the move would not amount to selling Nigeria’s assets but rather opening the door to strategic partnerships.
Ojulari said:
“Our solution is to put a sustainable structure in place where the refineries can finance themselves and operate like proper businesses."
Dangote refinery to expand
Earlier, Legit.ng reported that Dangote Refinery is set to become the world’s largest refinery within three years.
Aliko Dangote, who disclosed this while speaking to journalists, said a second single-train unit will be constructed to expand the refinery from its current 650,000 barrels per day (bpd) capacity to 1.4 million bpd.
Dangote said the expansion would address Africa’s growing fuel demand, reduce dependence on imports, and create 65,000 jobs.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
