The Nigerian National Petroleum Company Limited has disclosed that it shut down Nigeria’s state-owned refineries after internal assessments showed they were operating at severe losses and eroding national value. Speaking at the Nigeria International Energy Summit 2026 in Abuja, NNPC Group Chief Executive Officer, Bashir Ojulari, said the decision followed a detailed technical and commercial review prompted by public frustration over years of heavy spending with little performance to show.
Ojulari explained that although crude oil was supplied regularly, capacity utilisation averaged only 50 to 55 percent, while operating and contractor costs continued to rise. He noted that the refineries produced mid grade products that failed to justify the cost and quality of crude supplied, meaning operations were destroying value rather than creating it over the long term.
Going forward, NNPC plans to replace contractor led operations with equity partnerships involving experienced refinery operators who will take ownership stakes and manage facilities commercially. Ojulari added that the Dangote Refinery has eased pressure on Nigeria’s energy system, allowing NNPC to make more sustainable decisions on downstream reforms.
