The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Bayo Ojulari, has disclosed that Nigeria’s state-owned refineries were operating at a “monumental loss” to the country, prompting his leadership team to halt operations to prevent further value erosion.

Ojulari disclosed this on Wednesday in Abuja during a fireside chat titled “Securing Nigeria’s Energy Future” at the Nigeria International Energy Summit 2026, where he offered rare insight into the commercial and operational realities confronting NNPC’s refining assets.

According to him, public anger over the refineries was justified, given the scale of public funds invested over the years and the high expectations placed on the facilities.

“On the refineries, Nigerians were angry. A lot of money has been spent, and expectations were very high. So we were under extreme pressure, extreme pressure,” Ojulari said.

He admitted that upon assuming office, refining was not his core area of expertise, having spent most of his career in the upstream sector, but said accountability demanded rapid learning.

“My background is upstream, so I was on a vertical learning curve. You are accountable, so you must learn very quickly. Otherwise, there is no escape,” he said.

Ojulari explained that once his management team began a detailed review of refinery operations, the financial reality became immediately clear.

“The first thing that became clear, and I want to say this very clearly, is that we were running at a monumental loss to Nigeria. We were just wasting money. I can say that confidently now,” he said.

He revealed that NNPC was consistently pumping crude cargoes into the refineries each month, yet utilisation levels hovered around 50-55 per cent, resulting in significant value leakage.

“We were spending a lot of money on operations, a lot of money on contractors. But when you look at the net, we were just leaking away value,” Ojulari said.

More troubling, he noted, was the absence of any credible plan to turn the losses around.

“Sometimes you make a loss during investment, but you have a line of sight to recovery. That line of sight was not clear here,” he added.

As a result, Ojulari said the first major decision of his administration was to halt refinery operations to prevent further losses and allow for a rapid reassessment.

“We decided to stop the refinery and do a quick check. We planned that if things were lined up, we would reopen and work on them,” he said.

He disclosed that part of the value destruction stemmed from the quality of products being produced, citing the Port Harcourt Refinery as an example.

“The crude we were taking into Port Harcourt was producing mid-grade products. When you aggregate their value compared to what you put in, it was a waste,” he said.

Ojulari acknowledged that the decision to halt operations was politically sensitive, noting that NNPC had historically been pressured to keep refineries running to ensure fuel supply continuity.

“There were political pressures to keep the refinery product, lots of pressure. But when you have been trained for over 35 years to focus on commerciality and profitability, you can’t sleep with that,” he said.

Nigeria’s four state-owned refineries, Port Harcourt (two plants), Warri, and Kaduna, have for decades operated far below capacity despite repeated turnaround maintenance exercises costing billions of dollars.

At various points, the plants have operated at single-digit capacity or been shut down entirely, forcing Africa’s largest oil producer to rely almost entirely on fuel imports.

Between 2015 and 2023 alone, successive administrations approved multiple rehabilitation contracts, yet domestic refining output remained negligible, intensifying public scrutiny of NNPC’s operational efficiency.

Ojulari’s comments mark one of the most candid acknowledgements by an NNPC chief executive that continued refinery operations, under prevailing conditions, were economically unjustifiable.

The remarks underscore a broader shift within NNPC, under the Petroleum Industry Act, toward commercial discipline, even in politically sensitive areas such as domestic refining.

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President Bola Tinubu on Tuesday said Nigeria is ready to collaborate with African nations, global partners, and the private sector to deliver cleaner, affordable, inclusive, and more secure energy.

He said energy plays a critical role as the invisible force holding the modern world together, as well as the quiet architecture of balance among nations, and as the unseen hand that steadies economies and sustains societies.

The President stated this when he declared open the 9th Nigeria International Energy Summit held at the State House Banquet Hall, Abuja. The summit was attended by heads of delegation and senior government officials from across the globe, as well as leaders of international energy organisations, chief executives of global and indigenous energy companies, development finance institutions, and representatives of host communities.

Tinubu, who was represented at the summit by his deputy, Vice President Kashim Shettima, observed that while energy remains central to peace, prosperity, and global stability, Nigeria is focusing heavily on utilising its vast gas reserves as a transition fuel and expanding renewable energy capacity.

“Energy must unite communities, stabilise economies, and secure futures. It must power factories, illuminate homes, fuel innovation, and build trust between government, investors, and citizens. Nigeria stands ready to collaborate with Africa, global partners, and the private sector to deliver energy that is secure, affordable, cleaner, and inclusive,” he declared.

The President recalled that even though his administration inherited an energy sector that was rich in potential in 2023, the sector was “constrained by inefficiencies, uncertainty, and prolonged underinvestment.”

“We set to work without fanfare, guided by the clear understanding that energy cannot be treated simply as an economic commodity if stability is our goal.

“Energy is a catalyst for national security, industrial growth, social inclusion, and regional cooperation,” he noted.

Tinubu assured that his government was fully committed to “building an energy system that delivers reliability, transparency, sustainability, and shared prosperity.”

Outlining efforts by his administration to boost the energy sector, the President said his administration sustained and deepened the full implementation of the Petroleum Industry Act, consolidating its role as the linchpin of sector reform and strengthening regulatory institutions to ensure clarity of roles, transparency, and investor confidence.

He continued: “Under our watch, Nigeria’s upstream activity recorded a historic rebound. Rig counts rose from eight rigs in 2021 to 69 rigs by late 2025, reflecting renewed exploration and drilling momentum.

“The sector secured Final Investment Decisions exceeding $8bn, including major offshore gas developments involving global energy companies. Foreign direct investment into the oil and gas subsector rebounded strongly, driven by regulatory certainty, fiscal reforms, and improved operating conditions.”

Under his watch, Tinubu said crude oil theft, which had been a major constraint on production and revenue, declined significantly due to enhanced security coordination, surveillance, and regulatory enforcement, adding that the efforts paid off, restoring operational stability and improving Nigeria’s production reliability in international markets.

Earlier, Gambian President Adama Barrow observed that Nigeria’s policies have implications far beyond its borders, noting that working together through strategic partnerships is key to regional solutions and energy security.

President of the Republic of Equatorial Guinea, Teodoro Obiang Nguema Mbasogo, maintained that Africa must cease to be merely an exporter of raw materials and focus on processing them for the betterment of future generations.

The Senate President, Godswill Akpabio, in a speech that was read on his behalf, averred that in Africa, energy is not just about resources but about inclusive and sustainable prosperity.

He assured that the National Assembly is ready to work with relevant stakeholders through legislative backing, agreeing that when the energy system works, the economy grows more resilient.

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The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has stated that Nigeria achieved a major investment breakthrough in 2025 with the signing of 28 new field development plans, valued at $18.2bn, which carry an estimated production potential of 1.4 billion barrels of oil.

Lokpobiri disclosed this on Tuesday in Abuja while delivering his ministerial address at the opening ceremony of the 9th Nigeria International Energy Summit 2026, saying Nigeria had emerged as Africa’s leading destination for oil and gas investments, with four of the seven major Final Investment Decisions announced across the continent between 2024 and 2025 taken in the country.

The Nigeria International Energy Summit is the Federal Government’s official annual platform for energy policy dialogue, investment promotion, and innovation. The ninth edition of the summit is themed “Energy for Peace and Progress: Securing Our Shared Future.”

According to the minister, the development was not accidental but the outcome of deliberate reforms, improved policy clarity, and stronger governance, which have helped to restore investor confidence in Nigeria’s oil and gas sector.

He added that the renewed inflow of capital signalled Nigeria’s return to the global energy investment map after years of stalled projects and declining output, stressing that recent fiscal, regulatory and operational reforms were beginning to yield measurable results.

Lokpobiri said, “I want to talk first about Nigeria; our successes, our renewed readiness, the reforms we have implemented, and then put that in the context of Africa, because our fortunes are tied together.

“In 2025 alone, 28 new field development plans worth $18.2bn were signed, with the potential of 1.4 billion barrels of oil. Between 2024 and 2025, of the seven major FIDs announced across Africa, four were in Nigeria. This did not happen by accident; it is the result of steady work, policy clarity, and better governance. These are facts, not rhetoric, showing that Nigeria is once again a magnet for serious business. Our investment climate in Nigeria allows for free movement of capital.”

Lokpobiri recalled that when the current administration took office, Nigeria’s upstream sector was in distress, with declining production, investor apathy, and an absence of major new projects.

“That Nigeria possesses an enormous hydrocarbon endowment, and a geography that combines deepwater, shallow, and onshore acreages, is a fact. But resource richness alone is not enough. What makes Nigeria now different is the legal, regulatory, financial, and structural transformation we are delivering. Because ‘investment-ready’ means more than just having reserves; it means having clarity, predictability, efficiency, incentives, and alignment.

“When this government started, this sector was struggling, production and capital flight, and investment had stalled. For more than a decade, there were no major final investment decisions on new projects. Investors were cautious, and confidence was lacking. That was our reality,” he narrated before a distinguished audience, including Gambia’s President, Adama Barrow.

He attributed the reversal of this trend to the full implementation of the Petroleum Industry Act, which he said provided a stable fiscal framework, clearer licensing processes, stronger regulation, and predictable contract terms.

The minister added that cost pressures in the upstream sector were also addressed through the Upstream Petroleum Operations (Cost Efficiency Incentives) Order 2025, which grants tax credits and lowers unit operating costs for producers.

Lokpobiri said the launch of Project One Million Barrels in October 2024 had delivered tangible results within a year, lifting crude oil production to between 1.7 million and 1.83 million barrels per day, representing an increase of about 20 per cent over previous output levels.

“We launched ‘Project One Million Barrels’ in October 2024. In less than a year, production rose to between 1.7 and 1.83 million barrels per day, up by roughly 300,000 barrels in July 2025 alone. The number of active rigs jumped from a paltry 14 in 2023 to over 60 as of today. These are signs that the reforms are working, that idle assets are being activated and existing assets are being optimised,” he said.

Lokpobiri also highlighted the successful completion of long-delayed asset divestments by International Oil Companies, which transferred onshore and shallow-water assets to Nigerian firms.

He noted that the divestments had added about 200,000 barrels per day to national output and were concluded in record time under President Bola Tinubu’s leadership.

However, Lokpobiri admitted that some local policy missteps had created fresh challenges, noting that Nigeria’s oil and gas service sector continued to face structural constraints, particularly within the engineering, procurement, and construction segment.

He said a misinterpretation of the Nigerian Oil and Gas Industry Content Development Act had encouraged the rise of “briefcase EPC companies,” forcing out experienced international contractors while sidelining competent indigenous firms.

Lokpobiri said Africa’s annual $120bn hydrocarbon import bill represented a lost opportunity, calling for stronger support for the African Energy Bank, headquartered in Nigeria. “If we do not mobilise resources to solve Africa’s energy problems, our misery will increase as our population grows. The responsibility is ours and ours alone,” he said.

Meanwhile, the Independent Petroleum Producers Group has called for urgent reforms to streamline industry fees, reduce bureaucracy, and improve access to long-term capital to sustain growth in Nigeria’s oil and gas sector.

Delivering a keynote address at the event, the IPPG Chairman and Aradel Holdings CEO, Adegbite Falade, said the summit would be “deeply engaging, thought-provoking, and solution-driven,” adding that the global energy landscape was being reshaped by conflicts, shifting alliances, and growing energy insecurity.

“In today’s interconnected world, energy has no borders. Shocks in one region affect people across continents, and Africa, including Nigeria, is not shielded from these pressures,” Falade said.

He noted that Nigeria’s oil and gas sector had recorded significant growth, highlighting that for the first time, indigenous producers and independents now account for more than 50 per cent of national production. He attributed this to improved export pipeline availability, reduced crude losses, and stronger local participation.

“We must continue to create an industry that allows private capital to drive mainstream infrastructure development. Without this, we cannot bridge the massive gap in potential that exists in our contribution to the nation’s GDP,” Falade said.

“To achieve this, we must reduce bureaucracy, streamline industry fees and related charges to keep operators competitive. Our sector currently operates at significantly elevated costs compared to other non-shared jurisdictions. Access to long-term, affordable capital must also improve.”

The PUNCH reports that the consensus of stakeholders at the event was that Nigeria’s oil and gas sector is on a strong recovery path, driven by policy clarity, regulatory reforms and strategic investments, and that sustained collaboration between government, indigenous companies and international partners is essential to consolidate growth, expand domestic energy access and position the country as a regional and global energy hub.

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