Long-term neglect hindering refineries revamp – NNPC

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Bayo Ojulari, has stated that rehabilitating Nigeria’s refineries has remained an uphill task due to decades of neglect.

Ojulari also revealed that the company is facing resistance from individuals and groups opposed to the ongoing transformation in the national oil firm. He made these remarks on Thursday while hosting a delegation from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the NNPC Towers in Abuja.

Years of Neglect, Huge Investments, and New Strategy

The NNPC boss explained that the Warri, Port Harcourt, and Kaduna refineries had suffered years of abandonment, making their rehabilitation extremely challenging despite significant investments.

“A lot of money has been spent on these refineries. However, it’s been very challenging to translate that money into profitability. It’s like having an old car parked for years without greasing or oiling — when you fix one thing, another breaks down. That’s the situation we are dealing with,” Ojulari said.

He disclosed that technical and commercial reviews of the refineries had been completed, with the Port Harcourt refinery already adopting a new model.

“From our commercial review, we concluded that the best way forward is to partner with a true professional refining company to cooperate with us,” he added.

Ojulari further noted that NNPC is leveraging its equity stake in the Dangote Petroleum Refinery to diversify supply sources and ensure there is no product shortage during the transition phase.

Reform Efforts and Attacks on NNPC

Highlighting his priorities since assuming office five months ago, Ojulari said reviving the refineries through the Incorporated Joint Venture (IJV) model remains central.

“Mr President doesn’t pressure me to do the wrong thing. That is why we are going back to the baseline to ensure whatever we are doing leads to sustainable refinery operations,” he explained.

He admitted, however, that NNPC has come under attack due to its reform-driven agenda.

“We are under attack. We will not budge to short-term pressure, as it will not be in the best interest of Nigerians. You cannot drive change without a price, and the transformation is tough,” Ojulari stressed, calling for patience from Nigerians to reap the long-term benefits.

PENGASSAN Commends Progress

In his remarks, PENGASSAN President, Festus Osifo, applauded the NNPC leadership for its partnership during the 2025 PENGASSAN Energy & Labour Summit in Abuja. He also acknowledged the progress recorded under Ojulari’s leadership, including the resumption of pipeline operations and a reduction in crude oil theft.

Osifo further suggested reducing government’s stake in the refineries to minimise political interference:

“What we’ve asked over time is whether it is not possible for an experienced refiner to buy into the shares of the refineries. Then, as government through NNPC, we reduce our stake. That way, the refinery’s operations can continue as a going concern without excessive political influence,” he said.

He also commended improvements in output since Ojulari assumed office:

“Since you came on board, our pipelines — from the Forcados Pipeline to the TNP — have been working. This has led to the higher production we observe today in the industry,” Osifo added.