NNPC Admits N13tn Spent on Idle Refineries Amid Monumental Losses

The Nigerian National Petroleum Company Limited (NNPC) has revealed that it spent an estimated N13.2 trillion on the country’s three state-owned refineries in 2023 and 2024, even as the facilities continued to operate at a loss. The funds, according to the company, went toward turnaround maintenance, operations, and bank charges.

NNPC Group Chief Executive Officer, Bayo Ojulari, described the refineries as a “monumental loss” to Nigeria during a fireside chat titled Securing Nigeria’s Energy Future in Abuja. He said public frustration over the refineries’ poor performance is justified given the massive investments over the years.

According to NNPC’s 2024 financial statements, the Port Harcourt, Warri, and Kaduna refineries collectively owed the company about N4.52 trillion in 2023, rising to N8.67 trillion by the end of 2024. Port Harcourt alone saw its obligations rise from N1.99 trillion in 2023 to N4.22 trillion in 2024, while Warri’s debt increased from N1.17 trillion to N2.06 trillion, and Kaduna’s from N1.36 trillion to N2.39 trillion over the same period.

Ojulari noted that despite regular crude feed into the refineries, utilization remained low—around 50–55 percent—and operations failed to generate meaningful revenue. “We were spending a lot of money on operations and contractors. But when you look at the net, we were just leaking away value,” he said.

He added that there was no credible path to recovery for the refineries, prompting his administration to halt operations temporarily for a full reassessment.