The Nigerian National Petroleum Company Limited (NNPC) has invested around N13.2 trillion into the country’s three major state-owned refineries in 2023 and 2024. This financial commitment primarily covers turnaround maintenance, operational costs, and related bank charges. However, the ongoing dysfunction of these refineries has sparked significant concerns, as they continue to incur substantial losses and struggle to meet commercially sustainable operational levels.

Bayo Ojulari, the Group Chief Executive Officer of NNPC, has openly recognized the dire situation, labeling the refineries as a substantial financial burden for the country. During a session at the Nigeria International Energy Summit 2026, he described the losses incurred from these facilities as “monumental.” This acknowledgment is an unusual but crucial moment for the NNPC, given that such admissions about public sector inefficiencies are seldom made publicly.

The financial reports show that the combined debt owed by the Port Harcourt, Warri, and Kaduna refineries to NNPC stood at approximately N4.52 trillion in 2023. This situation raises significant questions about the management and operational efficiencies of Nigeria's oil sector, highlighting the need for reform and innovation if the country seeks to secure a viable energy future and reduce the financial hemorrhage from these state assets.