The Nigerian National Petroleum Company Limited injected an estimated N13.2 trillion into the country’s three state owned refineries between 2023 and 2024, despite the facilities recording heavy losses and failing to operate at commercially sustainable levels.
Financial statements from NNPC show that the Port Harcourt, Warri, and Kaduna refineries collectively owed the national oil company about N4.52 trillion in 2023, a figure that rose sharply to N8.67 trillion by the end of 2024. The combined indebtedness of N13.2 trillion largely reflects funds committed to turnaround maintenance, refinery operations, and associated bank charges.
The scale of spending was publicly acknowledged by NNPC Group Chief Executive Officer, Bayo Ojulari, who described the refineries as a major financial burden on the nation. Speaking at the Nigeria International Energy Summit 2026 in Abuja, Ojulari said the facilities were operating at a monumental loss and draining public resources without a clear path to recovery.
According to the accounts, the Port Harcourt refinery absorbed the largest share of funding, with its obligations rising from about N1.99 trillion in 2023 to N4.22 trillion in 2024. The Warri refinery’s debt increased from N1.17 trillion to N2.06 trillion within the same period, while Kaduna refinery liabilities grew from N1.36 trillion to N2.39 trillion, reflecting continued spending on maintenance, staffing, security, and finance costs.
Ojulari revealed that crude oil was supplied to the refineries regularly, yet utilisation hovered between 50 and 55 per cent. He noted that despite high operational and contractor costs, the facilities continued to leak value, prompting the new management to halt operations to prevent further losses and reassess the assets.
As of the end of 2024, the refineries still carried N8.67 trillion in outstanding obligations to NNPC, highlighting the challenge of converting years of investment into viable refining operations.
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