NNPC Shuts Refineries to Boost Efficiency, Sustainability
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has described the ongoing shutdown of Nigeria’s state-owned refineries as a strategic move to realign the energy sector for efficiency, sustainability, and commercial viability.
Speaking at the Nigeria International Energy Summit (NIES), Ojulari emphasized that the shutdowns are not short-term cost-cutting measures, but a necessary step to end decades of inefficiency and losses. “We are drawing a line in the sand against wasteful contracts and operational mismanagement that have plagued these facilities for years,” he said. Ojulari explained that continuing to operate the underperforming refineries drains Nigeria’s foreign reserves, especially given the need for supplementary fuel imports. The closures are aimed at reducing foreign exchange pressure while creating space for strategic restructuring and partnerships. He also outlined plans to revive idle refineries through equity partnerships with experienced global operators, ensuring sustainable and commercially viable operations. “Energy security is not just about owning assets, but about reliable supply, efficiency, and sustainability,” Ojulari said. The NNPCL boss traced past refinery failures to weak preventive maintenance, overreliance on external turnaround contracts, and operational mismanagement. The current strategy seeks to correct these structural issues and position Nigeria’s refineries for long-term operational success. Ojulari assured that refinery operations will resume only when conditions guarantee sustainable performance, signaling a new era of disciplined, metrics-driven management for Nigeria’s critical energy infrastructure.
