By Deborah Olusegun
The Nigerian National Petroleum Company Limited (NNPCL) has temporarily suspended operations at the country’s refineries after internal reviews revealed persistent losses, low utilisation and value erosion, the Group Chief Executive Officer, Bayo Ojulari, has disclosed.
Speaking at the Nigeria International Energy Summit (NIES), Ojulari explained that crude oil supplies to refineries continued, but utilisation rates hovered between 50 and 55 percent, while operating and contractor costs escalated.
Refined products often returned lower value than the crude input, prompting the company to take the difficult decision to halt operations.
He noted that despite intense political pressure to keep the refineries running, the NNPCL applied strict commercial logic to “stop the rot” and reassess its assets for long-term sustainability.
Ojulari highlighted that the commencement of the Dangote Refinery provided critical relief, allowing NNPCL to pause, review its operations, and implement a more financially viable and efficient strategy.
The decision reflects a policy shift towards optimizing national petroleum assets, safeguarding public funds, and ensuring that refinery operations contribute positively to Nigeria’s energy value chain.
