NNPC admits it cannot run modern refineries profitably, seeks foreign operators with equity stakes as losses and inefficiencies persist

For the first time in decades, the Nigeria National Petroleum Company (NNPC) Limited has publicly admitted its inability to operate modern refineries profitably and is seeking foreign partners with equity stakes to manage them efficiently.

Also read: NNPC Gas Master Plan Targets 2bn Cubic Feet Gas Production by 2030

The revelation came during a fireside chat titled “Securing Nigeria’s Energy Future” at the Nigerian International Energy Summit 2026 in Abuja, where NNPC Group CEO Bayo Ojulari cited economic realities as the reason for halting refinery operations.

“When we assessed the refineries, it was clear they were destroying value. Every barrel processed was running at a loss,” Ojulari said.

He explained that refinery utilisation rates hovered between 40 and 50 per cent, while operating costs, crude supply losses, and contractor payments continued to rise, creating a situation in which processing crude oil resulted in net losses for the country.

“The result was a system that converted valuable crude oil into low-value products at a net loss to the country. The more we processed, the more money Nigeria lost,” Ojulari added.

The CEO’s admission marks a major shift from decades of political and operational attempts to revive Nigeria’s state-run refineries, which have struggled with inefficiency, mismanagement, and low capacity utilisation.

By seeking foreign operators with equity participation, NNPC aims to attract investment, operational expertise, and global best practices to revamp Nigeria’s refining sector and reduce reliance on imported petroleum products.

Also read: NNPC’s Ojulari Hails Record 2025, Sets Bold 2026 Goals

This announcement is expected to reignite discussions on energy sector reforms and public-private partnerships as Nigeria seeks to secure a sustainable energy future while addressing the chronic challenge of domestic fuel supply.