ABUJA — The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Bayo Ojulari, has admitted that reviving Nigeria’s long-dormant refineries has proven extremely difficult due to decades of neglect, despite massive investments.
Ojulari made this known on Thursday while hosting a delegation from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the NNPC Towers in Abuja.
He explained that years of abandonment left the Warri, Port Harcourt, and Kaduna refineries in near-total disrepair, likening the challenge to trying to restart an old car that had been left unused for too long.
“A lot of money has been spent on these refineries. However, it’s been very challenging to translate that money into profitability. When you have an old car and you park it for some time without greasing or oiling, it becomes difficult to put it back together. When you fix one thing, another problem surfaces,” Ojulari said.
The NNPC boss disclosed that both technical and commercial reviews of the facilities had been concluded, with a new model being pursued. “We’ve now completed a commercial review for the Port Harcourt refinery. From that review, we have concluded that the best way forward is to partner with a professional refining company to join us and cooperate,” he revealed.
Ojulari further noted that NNPC is leveraging its equity in the Dangote Petroleum Refinery to stabilise supply while working on sustainable solutions to ensure the country avoids fuel shortages.
Highlighting his priorities since assuming office five months ago, Ojulari said the administration of President Bola Tinubu had given him freehand to pursue sustainable reforms. “Mr President doesn’t pressure me to do the wrong thing. That is why we are looking at the baseline to ensure whatever we are doing, the refineries work sustainably going forward,” he stressed.
However, he raised concerns that the company’s reforms were facing resistance. “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 declared, urging Nigerians to be patient with the process.
On his part, PENGASSAN President Festus Osifo praised the NNPC for its collaborative approach, acknowledging “remarkable milestones” achieved under Ojulari’s leadership, including the resumption of key pipeline operations and a reduction in crude oil theft.
“What we’ve asked over time is whether it is not possible for an experienced refiner to buy into the refineries’ shares, while government, through NNPC, reduces its stake. That will limit political interference and ensure long-term refinery operations,” Osifo suggested.
He further commended improvements in production: “Since you came on board, our pipelines have been working — from the Forcados Pipeline to the TNP — and that has led to the higher production we observe today in the industry.”
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