Reopening Port Harcourt refinery was a waste of assets — NNPC GCEO

The Group Chief Government Officer of NNPC Restricted, Engr. Bayo Ojulari, has declared that the re-opening of the Port Harcourt Refinery and Petrochemical Firm was an enormous waste of assets.

Ojulari, who spoke on Wednesday on the ongoing 2026 Nigerian Worldwide Vitality Summit, mentioned the nationwide oil firm at present lacks the capability to function refineries profitably.

He famous that for refineries to operate successfully, there should be enough financing, competent Engineering, Procurement and Development (EPC) contractors, in addition to environment friendly operations and upkeep capability.

The Port Harcourt Refinery, which was rehabilitated at a value of $1.5 billion underneath the management of former NNPC GCEO, Mele Kyari, was reopened in November 2024 after about three years of rehabilitation. Nonetheless, it was shut down in Might 2025 on account of sustained monetary losses.

Ojulari defined that after learning the refinery’s operations for a number of months, it turned evident that the power was working at a large loss.

“The very first thing that turned clear was that we have been operating at a monumental loss to Nigeria. We have been simply losing cash. I can say that confidently now,” he mentioned.

“So the primary determination I needed to make was to cease the rot by shutting it down after which shortly recalibrating to see what might be accomplished.”

He questioned how the refinery continued to lose cash regardless of common crude provide.

“We have been pumping cargo into the refinery each month, however utilisation was round 50 to 55 per cent. These cargoes have worth, and we have been dropping that worth. We have been spending some huge cash on operations and contractors.

“However once you take a look at the online final result, we have been simply leaking worth, and there was no readability on flip these losses into constructive returns,” he added.

Ojulari mentioned NNPC is now looking for dependable companions with confirmed observe information in refinery administration to function the nation’s refineries.

“To make a refinery work, you want three issues. First, you want financing to assist operations and actions. Second, you want a reliable EPC contractor that may ship world-class tasks. Third, you want world-class operational capability to run the refinery”.

On plans to enhance oil manufacturing, Ojulari expressed optimism that the 1.8 million barrels per day manufacturing goal for 2026 is achievable.

He described the Federal Authorities’s 2025 finances benchmark of two.06 million barrels per day as overambitious, noting that common manufacturing stood at about 1.7 million barrels per day final yr.

“For this yr, now we have a goal of two million barrels per day, however the finances is predicated on about 1.8 million barrels per day. So we’re not over committing,” he defined.

“One of many monetary issues Nigeria confronted final yr was over projection. We over projected manufacturing and, by extension, income.

“By the center of the yr, we ran right into a disaster. Oil costs have been decrease and manufacturing was additionally beneath projections, but authorities companies had already made spending plans based mostly on these assumptions. These items have far-reaching penalties.

“That’s the reason having a reputable manufacturing plan shouldn’t simply be a box-ticking train. It’s one thing we should all take critically,” he mentioned.