NNPC has halted operations at Port Harcourt Refinery due to persistent financial losses, shifting strategy toward equity partnerships with experienced operators while praising Dangote Refinery for stabilising domestic supply.
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has shut down the $1.5 billion-rehabilitated Port Harcourt Refinery after internal reviews revealed “monumental losses” and value destruction. NNPC Group CEO Bayo Ojulari described the refinery’s brief reopening in November 2024 as a “huge waste of resources” and noted that utilisation hovered around 50–55 per cent, with monthly crude deliveries failing to offset operational and contractor costs.
Ojulari admitted that NNPC lacked capacity to run refineries profitably, citing overreliance on financing and EPC contracts, neglecting long-term operations. “We are not selling Nigeria, we are selling down equity where necessary to secure a sustainable refinery that runs like a business,” he said. He credited Dangote Refinery for providing vital capacity and noted ongoing discussions with experienced investors, including a major Chinese petrochemical firm, to lead equity-based operations.