NNPC Chief Reveals Unsustainability of Nigerian Refineries, Decides to Halt Operations

The Group Chief Executive of the Nigerian National Petroleum Corporation (NNPC), Ojulari, disclosed during a fireside chat in Abuja that the state-owned refineries in Nigeria are unsustainable and have been draining public funds without delivering significant output. The four refineries in Port Harcourt, Warri, and Kaduna have consumed billions of dollars in rehabilitation and maintenance costs over the years but have failed to operate at sustainable levels.

Ojulari admitted that refining is not NNPC's expertise and that a thorough review of operations revealed significant financial losses due to low utilization rates. The decision to halt refinery operations was made to prevent further losses and reassess their viability.

This move signifies a shift towards commercial discipline in the Nigerian petroleum industry, aiming to address the economic unsustainability of the refineries.