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Nigerian refineries incurred $500 m loss monthly, says Ojulari

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The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, yesterday spoke on his findings on the state of the nation’s refineries when he received a delegation of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), led by its President, Comrade Festus Osifo, at the NNPCL headquarters in Abuja.

He said: “When I resumed, one of the first priorities I focused on was the refinery. To quickly have a quick review to see whether we could quickly fix it. What I found is that we were losing between $300million to $500 million on a monthly basis in the overall refinery. We were pumping about 50,000 barrels of crude to go into the refinery. What was coming out was less than 40 per cent equivalent of what was coming in

“The first thing we then said,” he continued, “was rather than continue to lose, let’s quickly stop and look for a way to put this refinery into a sustainably profitable venture.”

Ojulari, who assumed office on April 2, this year, said the NNPCL was working to revive the moribund refineries to operate at full capacity by adopting the Nigeria Liquefied Natural Gas (NLNG) model which PENGASSAN has also advocated, adding that talks were ongoing to find a viable solution to the refining crisis, ensuring the refineries became a sustainably profitable venture.

He said that the national oil company had concluded a technical review for the three refineries, pointing out that the long neglect and lack of maintenance of the refineries, were the major reasons behind the huge losses recorded from the refineries on a monthly basis, despite the huge investments to make them work

The NNPCL chief, in his conversation with the Senior Staff arm of the oil sector union, said that a lot of money has been spent on these refineries, but however admitted that it’s been very challenging to translate those money into profitability.

He went philosophical, saying part of the reason is – when you have an old car, and you park the car for some time without any greasing and oiling. He added that the Port Harcourt refinery has been difficult to put back because of years of neglect and it’s been difficult when you fix one thing, the other thing is still there.

Turning to PENGASSAN, Ojulari said: “The solution you are proposing (the NLNG model) is the solution we are working on. We’ve now completed technical review of the three refineries, but it’s not just about technical. It’s also about commercial viability, It has to make money. Maybe not a lot, but it should not be making a loss.

“We’ve now completed the commercial review for the Port Harcourt refinery and from that commercial review, we have come to that conclusion that the best way forward is for us to get a true professional refinery company to join us and co-operate with us.

“We’ve been having meetings with potential parties, but we need to find the pathway that will work. We’ve also realised that it was not in the best interest of Nigeria, not in the best interest of NNPCL, that we will continue to put money into a place where we do not have the full ability to fully operationalise. So, when we bring in a true refinery, we can work with them.”

Ojulari, who did not elaborate on the term- ‘a true refinery,’ appealed to Nigerians, contractors, traders and beneficiaries to be patient with the shutdown of the refineries.

In the course of the briefing, the NNPCL chief said his team was facing attacks, but said he will not be deterred. “We are under attack. We will not budge to short-term pressure, as it will not be in the best interest of Nigerians. You cannot drive change without a price, and the transformation is tough,” Ojulari he said, adding that patience will be required from the Nigerian people at large to get to the other side of change, which will benefit Nigeria and her citizens.

He restated his commitment to stay focused in driving the mandate given to the team by President Bola Ahmed Tinubu.

“Tinubu did not put pressure on me to go and do the wrong thing. The baseline was to go and ensure that whatever we’re doing, going forward, sustainably works. There’s no need for us to pretend, there was no negative political pressure for NNPC to just continue to run at a loss, so we decided to freeze on it, and we’ve been working astutely fine.

“My commitment is that when this refinery is reworking, everybody will be back to work but for now, we all need to cooperate and work together to ensure that whatever we put in place is sustainable.”

Ojulari also declared that he is not a politician, saying that he will have to learn a bit more about politics. “I’m not hiding from anybody. I’m not a politician. I will have to learn a bit more about politics, but for me, it is a development plan, and I’m ready to learn.”

The NNPCL boss also raised concerns over threats to his life and those of some members of the company’s management, saying his major “offence” was the reforms he introduced in the oil and gas sector in line with President Bola Tinubu’s directive to revive the country’s ailing refineries. He said some powerful interests were plotting to unseat him, but insisted that he remained focused on ensuring the success of the refinery rehabilitation plan.

Earlier, President of PENGASSAN, Comrade Festus Osifo said the pipelines have been working optimally since Ojulari became the GCEO, leading to an increase in production.

He commended the management of NNPCL for moving beyond addressing the welfare of members.

While seeking answers to the reasons behind the shutdown of the refineries, Osifo noted that PENGASSAN was committed to supporting the NNPCL to stabilise the system which has been bedeviled with so many challenges including non-producing fields, to boost production to 2.6 million barrels per day next year.

Osifo said: “Managing institutions like this and trying to bring about change, we know that there are always ups and downs, which is expected in life. But at PENGASSAN, we assure you that we are solidly behind you, that we will work with you, we will collaborate with you and your team to ensure the stability of the system, because for us, when the system is not stabilised, it has a way of trickling down to our members.

“We will work with you to ensure that the system is stabilised and to ensure that NNPC continuously remains vibrant, the way it has been, and even to take it a notch higher, because today we are doing approximately 1.8 million barrels of crude.

“We believe that with a lot of capacities and experience that will be brought in, we’ll be able to bring about an improvement in our production,” Osifo said.

The tale surrounding the new development with the nation’s refineries, as painted by Ojulari, somewhat runs counter to that of his predecessor, Mele Kyari, who described the reopening of the Port Harcourt Refinery Company in November 2024, as a monumental achievement for Nigeria which signifies a new era of energy independence and economic growth for the country.

In a press release, Kyari said: ” The Nigerian National Petroleum Company (NNPC) Ltd. has fulfilled its pledge of re-streaming the Port Harcourt Refining Company (PHRC), signaling the commencement of crude oil processing from the plant and delivery of petroleum products into the market.

On Tuesday, November 26, 2024, according the NNPCl statement, trucks began loading petroleum products which include Premium Motor Spirit (PMS), or petrol, Automotive Gas Oil (AGO), or diesel and Household Kerosene (HHK), or Kerosene, while other product slates will be dispatched as well.

Speaking during a brief ceremony to mark the commencement of products loading at the Refinery on that Tuesday in Port Harcourt, according the press statement, Kyari described the “commencement of the loadout activities as a monumental achievement for Nigeria which signifies a new era of energy independence and economic growth for the country.

Kyari also expressed deep appreciation to the NNPC Ltd Board of Directors and the entire staff for their support and commitment, which crystallized into the streaming of the refinery. He also commended the contractors for doing a great job in ensuring that the refinery is delivered despite all challenges.

Also, the Chief Executive of the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA), . Farouk Ahmed congratulated the NNPC Ltd for the milestone and assured of his agency’s continued support towards the completion of rehabilitation work at the other refineries.

The PHRC rehabilitation project, is an Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) project that is aimed at restoring the refinery to full functionality and renewal. It has achieved over 16 million manhours with zero Loss Time Injury (LTI), the statement said.

Ojulari briefing yesterday is coming barely nine months after the Port Harcourt Refinery was adjudged fit for production by Kyari.

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  1. zoritoler imol

    September 27, 2025 at 11:07 pm

    Its like you read my mind! You appear to know a lot about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a bit, but other than that, this is wonderful blog. A fantastic read. I will definitely be back.

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Energy

8,500 transmission capacity: Low demand stalls generation of 3,500MW

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• Nigeria conducts grid synchronisation test connecting 15 countries for four hours

The Ministry of Power yesterday said despite the availability of 8,500MW transmission capacity in the Nigerian Electricity Supply Industry (NESI), low demand from the Distribution Companies (DisCos) has limited generation to 5,000MW, stalling 3,500MW.
As of July 17, 2025, the wheeling capacity was 5,500MW.
But the ministry disclosed its recent wheeling capacity in Abuja during a media briefing where it announced that Nigeria successfully conducted a grid synchronization test with 15 West African countries for four hours on November 8, 2025.
“Today, the minimum grid capacity we can even communicate is 8,500MW of capacity. If our generation reaches 8,000 MW today, the grid can comfortably and conveniently transmit it,” Adelabu said.
Besides, the Nigerian Independent System Operator (NISO), Market Operation Executive Director, Dr. Edmund Eje, explained that since electricity cannot be stored, the industry only generates energy based on demand.
His words: “The amount of energy generated is equal to the amount of energy that will be transmitted, and it is also equal to the amount of energy that is demanded by the distribution companies. It is simultaneously consumed.
“You don’t stall energy anywhere. The transmission capacity can carry 8,500MW, but it can only carry what can be consumed. Generators will not generate more than what will be consumed at the same time.”
On synchronization, he said the feat of successful synchronization will not affect the allocation of energy for domestic consumption.
Eje said that although there is a regulation that Nigeria allocates 600MW for bilateral trade, production constraints presently limit it to 360MW.
Adelabu, however, described the synchronization test success as a step towards the elimination of grid collapse from the industry, noting it means that there is confidence that the system is now resilient.
He described it as a landmark development in the evolution of West Africa’s electricity architecture.
He confirmed that on 8th November 2025, Nigeria successfully conducted a grid synchronisation test connecting the national electricity grid with the interconnected West African Power Pool (WAPP) system.
According to him, the exercise represents the first time in history that Nigeria has operated in a unified, stable, and fully harmonised configuration with the rest of the sub-region.
He clarified that while it is not yet a permanent synchronisation, the successful test clearly demonstrates that regional technical alignment is feasible and marks a major step toward eventual full integration.
Adelabu further noted that the synchronisation exercise, conducted between 05:04 a.m. and 09:04 a.m., involved the Nigerian grid which includes Niger Republic and parts of Benin and Togo and the rest of West Africa’s interconnected systems covering Ghana, Côte d’Ivoire, Burkina Faso, Liberia, Sierra Leone, Guinea, Senegal, The Gambia, Guinea Bissau, and Mali.
He said for four uninterrupted hours, power flowed seamlessly across national borders, operating at a single stable frequency and proving that West Africa is now technically capable of functioning as a unified power bloc.
He said the achievement ranks among the most significant milestones in the history of WAPP.
He said the test marks the first successful large-scale synchronisation attempt since 2007, when a short-lived trial lasted only seven minutes before failing.
Adelabu said Nigeria has made history with the successful synchronization of the national grid with the West African Power Pool interconnected system.
For four unbroken hours, according to him, electricity flowed from Nigeria and Niger into the entire West African sub-region covering Benin, Togo, Ghana, Côte d’Ivoire, Liberia, Sierra Leone, Guinea, Senegal, Mali, The Gambia, and Guinea-Bissau operating at a single, stabilized frequency.
Earlier at the NISO Maiden Stakeholders’ Engagement, the Managing Director, Engr. Abdul Mohammed said the milestone recorded with the synchronization milestone is more than a technical success, since it positions Nigeria as a regional power hub; opens new avenues for electricity trading; unlocks foreign exchange potential; and reinforces investor confidence in the emerging Nigerian electricity market.
According to him, a resilient electricity market requires more than engineering; it requires relationships.
He said it requires trust among service providers, trust between the market and regulators, trust between the government and operators, and, above all, trust from the Nigerian people.

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Business

UK–Nigeria Mission targets $32m market gap, connects women exporters

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By Grace Edet

The country’s efforts to deepen women’s participation in global trade received a major boost this week as the International Trade Centre (ITC) and the Nigerian Export Promotion Council (NEPC) convened a UK-funded trade mission in Abuja, connecting 30 Nigerian women-led businesses with 12 UK importers.
The mission is aimed at unlocking an estimated $32 million in untapped export potential between both countries.
Backed by the UK government under the SheTrades Commonwealth+ Programme, the three-day mission (18–20 November) focuses on agrifood and beauty products—two sectors where Nigerian women entrepreneurs already show strong competitiveness but low formal export participation.
Speaking at the opening session, British Deputy High Commissioner to Nigeria, Gill Lever OBE, said the UK remains committed to strengthening market access for Nigerian women entrepreneurs.
“The UK is committed to supporting Nigerian women entrepreneurs to access international markets and grow their businesses.
“This SheTrades mission demonstrates the enormous potential for Nigerian agrifood and beauty products in the UK market. The success we’ve already seen, with over $300,000 in sales generated, shows what’s possible when we unlock opportunities for women in trade,” Lever said.
She noted that the mission builds on the UK’s Developing Countries Trading Scheme (DCTS), which grants duty-free and quota-free access to at least 92 per cent of Nigerian products entering the UK market.
NEPC’s Executive Director/CEO, Nonye Ayeni, emphasised that women remain central to driving Nigeria’s export expansion.
“The best man for the job is a woman because women are resilient, dogged and determined. We have the spirit that never says die. Women!!! Nothing dies in our hands,” she said.
Ayeni added that the mission aligns with NEPC’s efforts to broaden Nigeria’s non-oil export base by integrating women-led businesses into high-value international markets.
ITC Programme Manager for SheTrades Commonwealth+, Michelle Kristy, said there is strong appetite for Nigerian-made agrifood and beauty products among UK buyers.
She said: “The potential for Nigerian women-led businesses and their products to enter the UK market is truly immense.
“This trade mission is about building bridges, connecting these talented women entrepreneurs with potential buyers and providing them a platform to flourish.”
The Abuja mission follows a series of engagements earlier in the year, including articipation of 5 Nigerian women-led firms at Halal Expo Manchester, and business-to-business meetings in the UK, over $300,000 in new sales and leads generated across agrifood and beauty categories.
ITC is also partnering with Nigeria’s Bureau of Public Procurement and the UN CEDAW Committee to finalise an affirmative procurement policy that will open public tenders to women, youth, persons with disabilities, and other excluded groups.
Between 2024 and 2025, the SheTrades Commonwealth+ Programme has trained more than 1,000 Nigerian women entrepreneurs in branding, digital marketing, and export readiness. It has also supported shea product manufacturers in meeting certification and audit requirements, while hosting major exhibitions, including the HerShowcase event in Abuja, which featured over 75 women-led brands.
NEPC continues to host the SheTrades Nigeria Hub, a platform providing export advisory, capacity building and market linkages for women-led businesses across the country.

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Maritime

Trade facilitation: NSC tinkers cut in 21-day dwell time at ports

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• Trains maritime police to curb clearance bottlenecks

By Grace Edet

The Nigerian Shippers’ Council has intensified efforts to tackle the country’s prolonged cargo clearance delays—currently averaging 21 days, and considered one of the longest globally, by strengthening collaboration with the Maritime Police Command through a new capacity-building programme.
The workshop with the theme: “Facilitating Port Efficiency: The Strategic Role of the Maritime Police”, held yesterday, in Lagos.
Declaring the training open on behalf of the Council’s Executive Secretary/CEO Pius Akutah, the Director, Regulatory Services Department, Margaret Ogbonnah, said the event marks “a high-point” in the port regulator’s long-standing partnership with the Nigeria Police, especially as the Federal Government pushes for more efficient port operations under the blue economy reform agenda.
In his remarks, the ES noted that the country continues to lag behind regional and global peers in cargo clearance speed.
“While it takes only 6 hours to clear a containerised cargo in Singapore and seven days in Lomé, it takes an average of 21 days or more in Nigerian ports. This has contributed to Nigeria’s low global perception index on Ease of Doing Business,” he said.
He explained that despite several government interventions, reductions in dwell time have been hindered by a combination of operational gaps and human-factor-related delays.
Akutah said the Council has received reports from port stakeholders about various forms of interference affecting cargo movement, including detention orders placed on cargo already cleared through due process, operational disruptions linked to multi-layered enforcement activities, and accidents involving personnel of shipping companies and terminals
He emphasised that such actions—whether arising from misunderstandings or procedural oversights, tend to extend dwell time and increase demurrage and storage charges for businesses.
“Investigations often showed that some actions were carried out without the knowledge of the appropriate authorities within the Maritime Police Command,” he said.
This, he added, prompted both institutions to engage the Inspector General of Police in 2018, resulting in a directive that only letters signed by the AIG or duly designated officers should be acted upon, thereby streamlining enforcement communication at the ports.
“Together, we have achieved quite a lot, but we cannot rest on past achievements. Our focus must be firmly on attaining international best practices,” Akutah said.
Represented by the Assistant Commissioner of Police Administration, Ports Authority Police, Western Command, ACP Olufikayo Fawole, the Assistant Inspector-General of Police (Maritime Command), AIG Chinedu Oko, commended the NSC for sustaining a collaborative platform that supports law enforcement efficiency within the maritime environment.
“Modern port security goes far beyond traditional policing. The efficiency of our ports depends significantly on how effectively law enforcement interfaces with operators, regulators, freight forwarders, shipping lines, and the wider supply chain,” he said.
He stressed that the Maritime Police play a critical role in securing maritime assets, deterring cargo-related crimes, preventing pilferage, and ensuring that legitimate trade flows without avoidable friction.
“Your professionalism and integrity directly influence the confidence of shippers, investors, and the international maritime community,” he told participating officers.
Delivering the technical paper on behalf of the AIG, DCP Chukwuemeka Obasi said the efficiency of the country’s ports is inseparable from the security framework supporting them.
He outlined three key reform pillars guiding police operations toward improved port efficiency. The first focused on operational streamlining by harmonising enforcement roles with the Nigerian Ports Authority (NPA), Nigeria Customs Service, NIMASA and other agencies to eliminate duplication.
The second emphasised technology integration, particularly the deployment of digital surveillance systems, cargo-monitoring platforms and intelligence tools under initiatives such as the Deep Blue Project. The third pillar centred on strengthening stakeholder collaboration by enhancing joint task forces and port security committees to ensure more coordinated maritime security responses.
However, he noted persistent challenges including overlapping mandates among agencies, limited patrol and surveillance logistics, legal bottlenecks in prosecuting maritime offences, and ethical concerns that can undermine efficiency.
To address these, he recommended joint security frameworks, expanded specialised training, smart surveillance, legal reforms, and stronger accountability systems, insisting that policing must support, not obstruct, trade facilitation.
In closing, the NSC boss reaffirmed that port efficiency cannot be achieved by one institution alone.
“Our mandate as Port Economic Regulator is to ensure efficiency, but it requires synergy with the Maritime Police and all stakeholders. This training is part of our commitment to educating officers and promoting global standards in port operations,” he said.
He commended officers of the Council and the Maritime Police Command for their role in organising the programme and urged participants to apply lessons learned to their daily operational decisions.
With Nigeria still grappling with a 21-day average cargo dwell time, the NSC says eliminating procedural bottlenecks, improving security coordination, and strengthening professionalism within port corridors remain central to restoring competitiveness. The Council and the Maritime Police believe that enhanced capacity, technology-driven enforcement and regulatory collaboration will be key to improving trade facilitation and supporting the country’s blue economy ambitions.

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