By Our Reporters
Many Nigerians had high hopes when President Bola Tinubu appointed Bashir Bayo Ojulari as the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd) on April 2, 2025, replacing Mallam Mele Kyari. The appointment formed part of a major board restructuring aimed at improving efficiency, transparency, and operational performance in the national oil company.
Soon after assuming office, Ojulari appeared to speak frankly about the state of Nigeria’s refineries. He did not hide his concerns, reportedly admitting that the state-owned refineries could not work effectively under the existing system and that the country had been clinging to a failing structure for too long. Many Nigerians welcomed the honesty, believing it signalled the beginning of a more realistic and reform-driven approach.
On April 30, 2025, NNPC Ltd carried out a major shake-up within its downstream operations, removing the Managing Directors of the Kaduna, Warri and Port Harcourt refineries. Those removed were Ibrahim Onoja (Port Harcourt Refining Company), Dr. Mustafa Sugungun (Kaduna Refining and Petrochemical Company), and Efifia Chu (Warri Refining and Petrochemical Company). The shake-up was widely interpreted as a response to prolonged delays and poor performance in the refinery rehabilitation programme.
On the same day, reports emerged that the former refinery heads were being investigated by the Economic and Financial Crimes Commission (EFCC) over allegations of mismanagement of funds allocated for refinery rehabilitation. The reports indicated that over $2.9 billion was under investigation, including $1.55 billion reportedly linked to the Port Harcourt refinery project and $740 million to the Kaduna refinery. However, following claims of arrests, legal representatives of the former refinery executives threatened a ₦50 billion lawsuit, insisting that only one of the officials had been invited for questioning and that none had been formally arrested.
Industry stakeholders warned at the time that the sudden removal of top management, without an immediate replacement structure, could further disrupt the already-delayed rehabilitation process and create new uncertainties around refinery timelines.
Less than a month later, on May 24, 2025, the Port Harcourt refinery was shut down again for what NNPC described as planned maintenance and a sustainability assessment. The shutdown attracted public criticism, as it came barely six months after the refinery had reportedly resumed operations following a $1.5 billion rehabilitation project.
In early February 2026, Ojulari again drew national attention during a fireside chat at the Nigeria International Energy Summit (NIES), where he openly stated that the state-owned refineries had been shut down because they were operating at a loss and could not be profitably sustained under the existing structure. He argued that continuing to run them was destroying value and draining public resources.
He explained that the refinery failures were largely driven by an approach focused on engineering, procurement and construction (EPC) contracts rather than operational excellence. According to him, the facilities operated at low utilisation rates of about 50 to 55 percent and recorded monumental losses. Ojulari maintained that operating them under such conditions meant “leaking away a lot of value,” insisting that NNPC, as presently structured, could not run them successfully.
Many Nigerians initially applauded these remarks, believing that the NNPC leadership was finally acknowledging reality and preparing the country for a more sustainable alternative.
However, Nigerians were later shocked by reports that NNPC Ltd had entered into a fresh agreement with two Chinese firms to accelerate the long-delayed rehabilitation and commercial restart of the Port Harcourt and Warri refineries, while also creating an opening for technical equity partnerships.
The new deal, structured as a Memorandum of Understanding (MoU), was signed with Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co., Ltd. NNPC described the agreement as a “critical milestone” in its refinery transformation drive.
The MoU was executed in Jiaxing City, China, on April 30, 2026, by Ojulari, alongside the Chairman of Sanjiang Chemical Company, Guan Jianzhong, and the Chairman of Xingcheng Industrial Park, Bill Bi.
In a statement issued by NNPC’s Chief Corporate Communications Officer, Andy Odeh, the company explained that the MoU was designed to lay the foundation for a potential Technical Equity Partnership that would help complete outstanding work at the Port Harcourt and Warri refineries and ensure their long-term operational efficiency. The statement noted that both facilities have a combined capacity of 335,000 barrels per day.
“The NNPC Ltd has signed a Memorandum of Understanding with two Chinese companies, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd, for collaboration through a potential Technical Equity Partnership in support of the completion and operation of the Port Harcourt and Warri refineries,” the statement read.
The development reignited public anger, as it came nearly one year after the Port Harcourt refinery was shut down for maintenance, and after billions of dollars had already been spent on repeated rehabilitation efforts that failed to deliver stable production.
Many Nigerians have since condemned the Ojulari-led NNPC, accusing it of gambling with the nation’s future through another round of questionable agreements.
Former President Olusegun Obasanjo had earlier expressed a similar view, insisting that Nigeria’s state-owned refineries would never function effectively. Obasanjo has repeatedly argued that the facilities are beyond repair, having been crippled by corruption, poor maintenance and mismanagement. In interviews granted in April 2026, Obasanjo strongly reiterated that government-run refineries cannot work and should be considered “scrap.”
He recalled that during his administration, Shell declined an offer to manage the refineries, citing corruption and structural inefficiencies. He further argued that Nigeria’s refineries, with capacities ranging from 60,000 to 100,000 barrels per day, are far below global standards, where functional refineries typically process 250,000 barrels per day or more. Obasanjo also revealed that he had brokered a deal with Aliko Dangote for the acquisition of a 51 percent stake in the refineries for $761 million, but the agreement was reversed by his successor, late President Umaru Yar’Adua.
Obasanjo condemned the continuous spending on rehabilitation, claiming that about $16 billion has been wasted on repairs that produced no meaningful results, an amount he noted was almost equivalent to what was required to build the Dangote Refinery.
Similarly, former Vice President Atiku Abubakar called for the immediate suspension and public scrutiny of the newly announced Technical Equity Partnership involving the two Chinese firms.
In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku described the deal as “another dangerous gamble” with Nigeria’s economic future. The chieftain of the African Democratic Congress accused the Tinubu administration of attempting to mortgage critical national assets through opaque arrangements lacking technical credibility, transparency and accountability.
“We are demanding an immediate suspension and public scrutiny of the Technical Equity Partnership announced by the Nigerian National Petroleum Company Limited involving two Chinese firms, Sanjiang Chemical Company Limited and Xingcheng (Fuzhou) Industrial Park Operation and Management Co. Ltd,” Atiku said.
An oil and gas expert and former President of the organised private sector, Dele Oye, also raised concerns after reportedly conducting due diligence on the Chinese firms selected for the rehabilitation of the refineries.
“We conducted due diligence on the two Chinese firms selected to rehabilitate the Warri and Port Harcourt refineries,” Oye said. “One firm has no track record in refinery turnaround maintenance and is facing financial constraints, raising doubts about its capacity to mobilise for the project. The other operates primarily as a real estate company.”
He added that compared with contractors that failed Nigeria in the past, the selected firms appeared less experienced and less qualified, he also questioned the silence surrounding the previously approved $1.5 billion for the Warri refinery rehabilitation, suggesting that Nigerians deserve transparency on how past funds were spent before new agreements are signed.
Beyond the criticisms from prominent figures, many Nigerians are now questioning the credibility and direction of Ojulari’s leadership. Critics argue that it is contradictory for the NNPC boss to publicly declare that the refineries cannot operate profitably under the current structure, only for the same administration to return to the same rehabilitation strategy that has repeatedly failed.
Nigerians are also asking why the government continues to pour scarce resources into refineries that have become symbols of waste, corruption, and failed promises, rather than investing in building at least one modern government-backed refinery or creating incentives for credible private-sector investors to expand domestic refining capacity.
More importantly, observers warn that if this latest agreement collapses like previous attempts, Ojulari risks being remembered not as a reformer, but as another NNPC chief who presided over wasteful spending and questionable deals. Many insist that unless his administration embraces transparency, publishes clear performance benchmarks, and demonstrates measurable progress, his tenure may end up mirroring those of past NNPC leaders—some of whom are now facing investigations and corruption allegations after leaving office.
