After years of financial losses and unsuccessful rehabilitation efforts, NNPC Limited has admitted that it lacks the technical and operational capability to run Nigeria’s refineries on a commercially viable basis and is now turning to foreign operators for equity-based partnerships.

The Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, disclosed this during a fireside discussion titled “Securing Nigeria’s Energy Future” at the ongoing Nigerian International Energy Summit 2026 in Abuja.

Ojulari explained that the decision to suspend refinery activities was purely business-driven and not influenced by political considerations.

“Our assessment showed that the refineries were eroding value rather than creating it. Each barrel processed resulted in financial losses,” he said.

He noted that utilisation rates remained between 40 and 50 per cent, while operating expenses, crude supply leakages and contractor-related costs continued to climb.

According to him, the combined effect was a system that transformed premium crude oil into lower-value refined products at a net loss to the country.

“In essence, increased refining only translated into greater losses for Nigeria,” he added.