Bashir Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), disclosed today that the company’s refineries had been operating at staggering losses of between $300 million and $500 million per month, prompting a halt in operations and a shift toward public private partnerships (PPP) to achieve sustainable profitability. The revelation came during a high level meeting with the leadership of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at NNPCL headquarters in Abuja.

Ojulari, who assumed leadership earlier this year following the relief of former GCEO Mele Kyari, described the findings from an initial review conducted shortly after taking office. “When I resumed, one of the first priorities I focused on was the refinery. I did a quick review to see if we could quickly fix it. What I found is that we were losing between $300 million to $500 million on a monthly basis in the refinery,” he stated. He added that approximately 50,000 barrels of crude were being pumped into the refineries daily, yet output was less than 40% of the input, highlighting severe inefficiencies rooted in long-term neglect.

The Port Harcourt Refinery, which had restarted operations in November 2024 under the previous administration, was singled out as a major contributor to the hemorrhage. Earlier assessments pegged its monthly operational drain at up to N500 million, with mid-grade products sold at a loss due to outdated infrastructure unable to produce high-quality premium motor spirit (PMS). “Years of neglect made it difficult to sustain; fixing one issue revealed others,” Ojulari explained, likening the refineries to “an old car parked without greasing and oiling.”

In response, NNPCL halted refinery operations in May to prevent further financial bleeding. “The first thing we said was rather than continue to lose, let’s quickly stop and look for a way to put this refinery into a sustainably profitable venture,” Ojulari said. Technical reviews of Nigeria’s three major refineries (Port Harcourt, Warri, and Kaduna) have been completed, along with a commercial viability assessment for Port Harcourt. The conclusion: full revival requires partnering with “a true professional refinery company” under a model similar to the successful Nigeria Liquefied Natural Gas (NLNG) structure.

“We’ve been having meetings with potential parties, but we need to find the pathway that will work,” Ojulari noted. He emphasized that continued government funding without expertise would not serve Nigeria’s interests. “It’s not just about technical [fixes]. It’s also about commercial viability—it has to make money. Maybe not a lot, but it should not be making a loss.”

Ojulari addressed criticisms and threats amid the reforms, stating he faced “attacks” and risks to his team for prioritizing long-term sustainability over short-term pressures. “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.” He clarified there was no negative political interference from President Bola Tinubu, whose directive focused on ensuring refineries operate sustainably.

PENGASSAN President Festus Osifo commended Ojulari for his transparency and commitment to reforms, including increased crude production (currently at 1.8 million barrels per day, with a target of 2.6 million next year) and optimal pipeline operations. Osifo pledged union support for stabilizing the sector and restoring jobs once sustainable models are in place.

The disclosures have reignited public debate on Nigeria’s refining crisis, with civil society groups and analysts calling for probes into past mismanagement. The refineries’ chronic underperformance has contributed to Nigeria’s reliance on imported petroleum products despite vast crude reserves, exacerbating forex pressures and fuel queues.

NNPCL has appealed for patience from stakeholders, contractors, and host communities as it pursues viable partnerships. No specific timeline for recommencing operations or finalizing deals was provided, but Ojulari reiterated his commitment: “My commitment is that when this refinery is reworking, everybody will be back to work but for now, we all need to cooperate and work together to ensure that whatever we put in place is sustainable.”

The statement underscores NNPCL’s ongoing transformation under Ojulari’s leadership, balancing immediate fiscal discipline with strategic revival in a sector long plagued by inefficiency and underinvestment. As of February 4, 2026, no official response has been issued from the presidency or other stakeholders.