We’re considering partnership to tackle refining crisis — NNPC’s Ojulari

The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Bayo Ojulari, has said the company is considering a partnership with “a professional refinery company” to find a lasting solution to Nigeria’s refining crisis and make the refineries sustainably profitable.

Ojulari disclosed this on Thursday in Abuja when he received members of the National Executive Council (NEC) of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). He revealed that the decision to seek partnerships followed a commercial review of the Port Harcourt Refinery, after an earlier technical review had been conducted on the three refineries.

“The solution Nigerians are proposing is the same solution we are working on. We’ve completed the technical review of the three refineries, but it’s not just about the technical aspect — it’s about commercial viability. It has to make money. Maybe not a lot, but it should not be running at a loss.

“We’ve now completed the commercial review for the Port Harcourt refinery and from that, we concluded that the best way forward is to partner with a professional refinery company. We have been in talks with potential partners, but we need to find a workable pathway. We also realised that without such partnerships, Nigeria and the NNPC would continue to spend money on facilities we cannot fully operationalise. With a professional refinery partner, we can achieve that.”

The GCEO explained that years of neglect and poor maintenance were the major reasons behind the massive monthly losses recorded by the refineries, despite huge investments.

“A lot of money has been spent on these refineries, but it has been difficult to translate that into profitability. It’s like an old car that has been parked for years without greasing or oiling. The Port Harcourt refinery has been particularly challenging. When you fix one problem, another arises.

“When I resumed, one of my first priorities was the refinery. I quickly conducted a review to see if it could be fixed. What I found was that we were losing between ₦300 million and ₦500 million monthly across the refineries. For example, when about 50,000 barrels of crude were pumped into the Port Harcourt refinery, less than 40% of the equivalent output came out.

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“So, we decided that rather than continue losing money, we should stop and look for a way to reposition the refinery into a sustainable and profitable venture that would also contribute to the economy.”

Ojulari appealed for patience from Nigerians, contractors, traders, and other stakeholders, stressing that President Bola Tinubu had not pressured him or the NNPC to act wrongly.

“The President never pressured me to do the wrong thing. The directive was clear: whatever we do going forward must be sustainable. There was no political interference to force us into running at a loss. So, we decided to pause operations, and since then we’ve been working carefully and strategically.

“My commitment is that once the refinery is operational again, all workers will return. For now, we all need to cooperate to ensure that whatever is put in place is sustainable.”

On the protests and calls for his removal, Ojulari revealed that there was a strong plan to oust him and that other senior management staff were also under constant attack.

“There’s no hiding it — the attacks against me are real. It’s not fake. Several other members of the leadership team have also been targeted.

“We are under attack at NNPC, but we know why. Despite this, we remain committed and focused on delivering the mandate President Tinubu has given us. Many of our staff are distressed and frustrated, but we must build resilience, stay focused, and continue to do the right thing. Even if darkness reigns for a hundred years, once light comes, it disappears.”

Earlier, President of PENGASSAN, Comrade Festus Osifo, commended Ojulari’s leadership, noting that pipelines had been working optimally since his appointment, leading to increased production.

While seeking clarity on the refinery shutdown, Osifo assured that PENGASSAN would continue to support NNPC in stabilising the oil and gas system, which has been plagued with challenges, including non-producing fields. He expressed optimism that Nigeria could achieve a production target of 2.6 million barrels per day by 2026.

“Managing institutions like this and driving change always comes with ups and downs. But at PENGASSAN, we assure you of our full support. We will collaborate with you and your team to stabilise the system because when it is unstable, it directly affects our members.

“Today we are producing about 1.8 million barrels of crude, but with the capacities and expertise being brought in, we believe production will improve significantly.”

NIGERIAN TRIBUNE