The Digest:
NNPC Group CEO Bayo Ojulari has explained that Nigeria's state-owned refineries were shut down after internal reviews revealed they were destroying value and draining public funds. Speaking at the Nigeria International Energy Summit, Ojulari stated that despite regular crude supply, utilization was around 50–55%, with operating costs exceeding the value of output. He attributed decades of failure to a flawed model that focused only on financing and construction while neglecting operational expertise. Under a new strategy, NNPC is seeking experienced global operators to take equity and run the refineries, rather than mere contractors.
Key Points:
• Halting unprofitable refinery operations aims to preserve public resources and redirect investment sustainably.
• Past operational failures have cost Nigeria trillions and increased dependence on expensive fuel imports.
• Partnering with global operators could transfer technical expertise and improve long-term commercial viability.
• The shift reflects a broader move toward professionalizing state assets and applying commercial discipline.
• Successful refinery rehabilitation would reduce foreign exchange pressure and enhance energy security.
NNPC’s new partnership model represents a strategic pivot from symbolic operation to sustainable, profit-driven refinery management.
Sources: Premium Times
