The Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited, Engr. Bayo Ojulari, has said the decision to reopen the Port Harcourt Refinery and Petrochemical Company after rehabilitation was a “waste of resources,” officials said on Wednesday at the 2026 Nigerian International Energy Summit.
Ojulari said a detailed review of the Port Harcourt refinery’s performance showed it was running at a significant loss to Nigeria, despite the rehabilitation, and operating costs exceeded the value of outputs, according to summit remarks.
The Port Harcourt Refinery was rehabilitated at a reported cost of about $1.5 billion and reopened in November 2024 after nearly three years of repairs, officials said.
The facility was shut down again in May 2025 following continued financial losses.
Ojulari said the refinery was operating at utilisation levels of about 50 to 55 per cent while incurring high expenses on operations and contractors, resulting in value loss.
He said this outcome indicated that the resources invested did not yield sufficient economic benefit.
The NNPC chief said effective refinery operations require adequate financing, competent engineering contractors and strong operational capacity, which the company currently does not fully possess, according to his remarks.
According to Ojulari, the NNPC board has approved a strategy shift to seek partnerships with experienced refinery operators rather than operate the refineries solely through existing internal capacity.
The board’s approach focuses on engaging entities capable of managing and running refineries with expertise.
Ojulari also highlighted the presence of the Dangote Refinery, which has continued to operate and provided supply relief while government-owned facilities faced shutdowns, as noted in summit comments.
