By Erewunmi Peace

The Nigerian National Petroleum Company Limited (NNPCL) has described the decision to reopen the Port Harcourt Refinery and Petrochemical Company (PHRC) as a “waste of resources,” after the facility cost approximately $1.5 billion to rehabilitate but continued to make heavy losses.

Speaking on Wednesday at the 2026 Nigerian International Energy Summit in Abuja, NNPCL Group Chief Executive Officer Engr. Bayo Ojulari said the company’s detailed review of refinery operations showed it was running at a massive financial loss despite regular crude supply and ongoing expenses.

Ojulari noted that, although the Port Harcourt refinery was rehabilitated at a cost of about $1.5 billion under past management and reopened in November 2024, persistent operational problems meant it was unable to operate profitably. The plant was subsequently shut down in May 2025 after sustained losses.

“The first thing that became clear was that we were running at a monumental loss to Nigeria. We were just wasting money,” Ojulari said, adding that utilisation rates remained low and refining operations were not commercially viable in their current form.

He explained that effective refinery operations require adequate financing, experienced engineering and construction partners, and world-class operational capacity — factors he said NNPCL currently lacks — and that simply reopening the facility without these elements would continue to drain public funds.

Ojulari also said NNPCL is now exploring partnerships with credible international firms with proven expertise in refinery management to help restore commercial viability to Nigeria’s refining assets.

The remarks by NNPCL’s CEO highlight ongoing challenges in Nigeria’s downstream petroleum sector, where state-owned refineries have repeatedly struggled to operate efficiently despite large sums spent on rehabilitation over many years.