Ojulari Admits Profitability Challenges as NNPC Struggles to Sustain Local Refineries
Written by Springnewsng | February 5, 2026
The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Bayo Ojulari, has acknowledged that the state-owned energy firm is finding it difficult to operate Nigeria’s refineries on a commercially viable basis.
Ojulari’s admission comes amid ongoing debates over the future of Nigeria’s refining sector and the government’s push for efficiency and private-sector participation. According to him, years of underinvestment, ageing infrastructure and high operating costs have made it increasingly challenging for NNPC to run the refineries profitably under the current structure.
He noted that while efforts are being made to rehabilitate the facilities, sustainable profitability will require significant reforms, improved management practices and stronger partnerships with the private sector. Ojulari stressed that the focus must shift from merely reviving refineries to ensuring they operate efficiently, competitively and without heavy reliance on government support.
Industry analysts say the acknowledgement reinforces calls for deeper reforms in Nigeria’s oil and gas sector, including concessioning or outright divestment of refineries, to reduce financial drain and boost domestic fuel supply.
The development also comes as Nigeria continues to rely heavily on imported refined petroleum products, despite being Africa’s largest crude oil producer. Stakeholders argue that resolving the refinery challenge is critical to improving energy security, stabilising fuel prices and strengthening the nation’s economy.
