NNPC Boss: Port Harcourt Refinery Was Losing N500m Monthly Before Rehabilitation Halt
Story written by Peterson August 29,2025
The Nigerian National Petroleum Company (NNPC) Limited says the Port Harcourt refinery was draining between N300 million and N500 million every month before rehabilitation works were suspended.
Group Chief Executive Officer of NNPC, Bayo Ojulari, disclosed this on Thursday in Abuja while addressing a delegation from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) led by its president, Festus Osifo.
Ojulari explained that years of neglect left the refinery in poor condition, with repairs on one unit often exposing deeper problems in others. “When you fix one thing, the other thing is still there. So, it’s been very difficult to get it,” he said.
According to him, a review carried out when he assumed office revealed that the Port Harcourt plant was a major source of losses. About 950,000 barrels were pumped into the facility, but analysis showed that less than 40 percent was processed effectively.
He added that the refinery’s design made it difficult to produce premium motor spirit (PMS) profitably. Instead, the plant was turning out mid-grade products, which were sold at a loss.
Ojulari stressed that rather than continue running at a deficit, the company decided to suspend operations and redesign a sustainable plan for profitability and job creation.
On political interference, he clarified that President Bola Tinubu gave no directives to take shortcuts, but instead mandated NNPC to pursue a long-term, workable solution. “There’s no need for us to pretend. So there was no negative political pressure for NNPC to just continue to run at a loss,” he said.
He reaffirmed that rehabilitation of the Port Harcourt refinery remains on track, and despite challenges, NNPC has no intention of selling the facility.
