Foremost energy expert and Professor Emeritus of Petroleum Economics, Prof. Wumi Iledare, has described the Nigerian National Petroleum Company Limited’s (NNPCL) decision to pause operations at the Port Harcourt, Warri, and Kaduna refineries as a necessary acknowledgement of economic reality rather than a policy failure.
Reacting to comments by NNPCL Group Chief Executive Officer, Bayo Ojulari, Prof. Iledare said the move reflects a realistic assessment that the existing refinery structure risks destroying value instead of creating it.
In a commentary sent to DAILY POST on Wednesday, Iledare argued that refinery rehabilitation should be approached strictly as a capital investment decision, not as a symbolic national project driven by sentiment.
Ojulari had earlier defended the pause in refinery operations during an interview at the Nigeria International Energy Summit (NIES) 2026 in Abuja, citing persistent inefficiencies in the state-owned facilities.
According to Iledare, injecting funds into assets with inefficient operating models does not lead to recovery but compounds losses. He stressed that most distressed industrial assets fail due to structural weaknesses rather than funding gaps.
“The justification for pausing rehabilitation was stripped to its essentials: the current structure risks destroying value rather than creating it. That is the question that should have guided policy from the beginning,” he said.
He added that the GCEO’s remarks point to a deeper, systemic problem with Nigeria’s refining sector, rather than superficial or cosmetic issues. Iledare noted that the candour displayed by NNPCL leadership marks a shift from managing public perception to confronting economic realities.
“Public energy conversations rarely admit value destruction. By stating it plainly, the GCEO signaled a shift from perception management to economic realism. The refinery pause should therefore be read not as a retreat, but as a diagnostic reset,” he stated.
However, Iledare cautioned that the greatest risk now is inertia, warning that structural reforms must not devolve into an indefinite pause. He emphasized the need for credible partnerships, transparent governance, and measurable performance outcomes.
“If execution matches intent, this moment could mark a turning point in how Nigeria manages strategic energy infrastructure—replacing sentimental asset management with disciplined value creation,” he said, adding that such a shift would be more significant than the fate of any single refinery.
DAILY POST recalls that NNPCL announced the shutdown of the Port Harcourt refinery in May 2025 for structural assessment, and the facility has remained closed since then.
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