The Nigerian National Petroleum Company Limited (NNPC Ltd.) has disclosed that the country’s state-owned refineries were shut down after internal reviews showed they were operating at “monumental losses” and destroying value for Nigeria.

The Group Chief Executive Officer of NNPC Ltd., Mr. Bashir Ojulari, made this known on Wednesday in Abuja during a Fireside Chat titled “Securing Nigeria’s Energy Future” at the ongoing Nigeria International Energy Summit (NIES) 2026.

Ojulari said his management team moved quickly to assess the true condition of the refineries amid public anger over years of heavy spending with little to show for it.

“When we came in, refineries were a hot topic. Nigerians were angry, expectations were very high, and we were under extreme pressure,” he said.
“After a detailed review, it became clear that we were simply wasting money.”

He explained that despite monthly crude supply to the plants, utilisation levels remained low while costs kept rising.

“Crude was going into the refineries every month, yet utilisation hovered around 50 to 55 per cent, and operational and contractor costs kept soaring,” Ojulari said.
“When we looked at the net outcome, we were leaking value with no clear line of sight to profitability.”

According to him, NNPC decided to halt operations to stop the financial drain, even in the face of political pressure.

“That trajectory would have meant value destruction for the next 30 years. We were not going to do that,” he said.

Ojulari also credited the Dangote Refinery with easing Nigeria’s fuel supply challenges and giving government room to rethink its refinery strategy.

“Whether you love Dangote or hate him, thank God for the Dangote Refinery. It is working, it is in Nigeria, and it gives us room to make better decisions,” he said.

He added that NNPC has strengthened collaboration with the Dangote Refinery while still playing its role as supplier of last resort and promoting competition in the downstream sector.

Explaining why past refinery efforts failed, Ojulari said too much focus had been placed on financing and construction, with little attention to long-term operations.

“You cannot have financing, EPC and O&M contracts all extracting value without any skin in the game. That system was designed for taking, not sustaining,” he said.

On the new direction, he said NNPC plans to bring in experienced refinery operators as equity partners rather than contractors.

“We are not selling Nigeria. We are selling down equity where necessary to secure a sustainable, self-financing refinery that runs like a business,” Ojulari said.

He disclosed that talks were already ongoing with potential investors, including a major Chinese petrochemical company, with site inspections expected soon.

On crude-for-naira and domestic supply, Ojulari said product availability remains NNPC’s priority, adding that prices would stabilise naturally once supply gaps are closed.