NNPC Limited Halts Refinery Operations
Analysis based on 7 articles · First reported Feb 04, 2026 · Last updated Feb 05, 2026
The shutdown of Nigeria's state-owned refineries by NNPC Limited due to monumental losses is expected to negatively impact Nigeria's economy, increasing reliance on imported refined products. This move, however, signals a shift towards commercial discipline within NNPC Limited, which could be viewed positively in the long term.
Bashir Ojulari, the Group Chief Executive Officer of NNPC Limited, revealed that Nigeria's state-owned refineries, including Port Harcourt, Warri, and Kaduna, were operating at monumental losses. Despite significant public funds invested and political pressure to keep them running, a detailed operational review showed they were economically unsustainable, with utilization rates between 50-55% and high operating costs leading to value erosion. The Nigerian National Petroleum Company===Port Harcourt Refining Company, for instance, produced mid-grade products whose value was less than the input cost. Consequently, NNPC Limited decided to halt refinery operations to prevent further financial damage and reassess their commercial viability, aligning with the commercial discipline enforced by the Petroleum Industry Act. This decision, though politically sensitive, aims to stop the waste of national resources.
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