NNPC Admits N13.2 Trillion Waste on Idle Refineries in Nigeria

The Nigerian National Petroleum Corporation (NNPC) disclosed that the country's three state-owned refineries consumed an estimated N13.2 trillion between 2023 and 2024. NNPC's Group CEO, Bayo Ojulari, publicly acknowledged the refineries as a significant financial burden, with Port Harcourt, Warri, and Kaduna refineries collectively owing NNPC N4.52 trillion in 2023, which increased to N8.67 trillion by the end of 2024.

Despite substantial investments in revamping the refineries, they failed to generate revenue to offset operational costs. NNPC's financial statement revealed that the refineries remained a net cost center, with ongoing maintenance and operational expenses outweighing any income generated.

Ojulari highlighted the need to reassess the refineries' value and operations, leading to a decision to halt operations in 2024 for a comprehensive review. The Port Harcourt refinery resumed operations in November 2024 after undergoing upgrades to enhance its capacity.