Bayo Ojulari Reveals NNPC Lost N500 Million Monthly on Port Harcourt Refinery Before His Tenure

Bayo Ojulari, the Group Chief Executive Officer (GCEO) of Nigerian National Petroleum Company (NNPC) Limited, has disclosed that the company was losing between N300 million to N500 million every month on the Port Harcourt refinery when he took over. Ojulari made the revelation on Thursday in Abuja while receiving a delegation from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), led by its president, Festus Osifo.

Ojulari explained that the refinery’s poor performance was due to years of neglect and a complex set of challenges. “When you fix one thing, the other thing is still there. So, it’s been very difficult to get it right,” he said. Upon assuming office, Ojulari made it a priority to review the refineries, particularly the Port Harcourt facility, in a bid to restore efficiency.

Upon his assessment, he found that the refinery’s operations were not only inefficient but also costly. “We were pumping about 950,000 barrels as cargo to go to the refinery,” he explained. “But the mass balance showed that less than 40% of what was going in was coming out.” He also noted that due to the refinery’s deteriorating condition, the output was largely subpar, producing mostly mid-grade products because only half of the refinery was operational.

Ojulari further explained that the refinery’s design, often misrepresented as an old and new system was flawed. “The old refinery was meant to feed into the new refinery to produce the right standard products for the market,” he said. However, attempts to revamp the old refinery had not been successful, leading to a situation where the refinery was unable to produce the desired quality of Premium Motor Spirit (PMS). The results were not only operationally inadequate but also financially detrimental.

The NNPC GCEO stressed that the situation was causing significant losses, which were ultimately borne by Nigerians. “It wasn’t just about me or anything. We were all losing as Nigerians,” he said. With this in mind, Ojulari decided to halt the rehabilitation efforts, opting instead to pause and reassess the best path forward.

“We made the decision to stop and look for a sustainable way to make the refinery a profitable venture, while also creating sustainable employment,” Ojulari added.

In his address, Ojulari also clarified that President Bola Tinubu had not pressured him into making hasty decisions. “The mandate I was given was to ensure that whatever we’re doing going forward works sustainably,” he stated, underscoring that there was no political pressure to continue operating the refinery at a loss.

In line with these remarks, Ojulari reiterated on July 30 that NNPC had no intention of selling off the Port Harcourt refinery, reaffirming the company’s commitment to completing a comprehensive rehabilitation and bringing the facility back to full operational capacity.

With ongoing efforts to restore the refinery, Ojulari’s focus is on turning the Port Harcourt facility into a profitable and efficient enterprise, which will not only contribute to Nigeria’s energy security but also drive sustainable economic growth.