Ojulari Explains Reasons Behind Shutdown of NNPC Refineries

Ojulari Explains Reasons Behind Shutdown of NNPC Refineries

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Mr. Bayo Ojulari, has explained the reasons behind the shutdown of operations at NNPC-owned refineries, saying the decision was taken to prevent further losses and ensure long-term sustainability.

Ojulari said the shutdown followed a comprehensive technical and commercial review which showed that the refineries were operating below optimal capacity, while consuming huge financial resources without delivering commensurate output. According to him, continuing operations under such conditions would have amounted to economic waste.

He explained that the refineries were shut down to allow for critical maintenance, rehabilitation, and safety assessments, stressing that years of aged infrastructure, frequent breakdowns, and outdated technology had made continuous operations inefficient and unsustainable.

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The NNPC boss noted that the decision aligns with broader reforms aimed at repositioning NNPC Ltd. as a commercially viable and profit-driven energy company, following the transition from a state corporation to a limited liability company under the Petroleum Industry Act (PIA).

Ojulari also clarified that the shutdown does not mean the refineries have been abandoned. Instead, he said NNPC is pursuing a strategic reset, which includes rehabilitation plans, partnerships with the private sector, and improved operational models to ensure the facilities can function competitively when fully restored.

He added that the shutdown has also helped NNPC curb operational leakages, reduce unnecessary spending, and redirect resources toward more sustainable options, including local refining partnerships and supply agreements.

Ojulari reassured Nigerians that the temporary shutdown would not worsen fuel supply challenges, noting that alternative supply arrangements and collaborations, including with local refiners, are in place to stabilise the downstream market.

The NNPC GCEO reiterated the company’s commitment to transparency, efficiency, and delivering value to Nigerians, saying tough decisions were necessary to break away from decades of inefficiency in the refining sector.

Ojulari Explains Reasons Behind Shutdown of NNPC Refineries