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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 Comment

1 Comment

  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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Maritime

Experts: Africa losing ground in global shipping over seafarer skills gap

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By Monireoluwa Lucas

Africa risks losing further ground in the global shipping industry as a shortage of internationally certified seafarers and maritime professionals continues to limit the continent’s ability to compete in an increasingly technology-driven sector.

The Manager of Training and Maritime Centre of Excellence (MCOE) at Nigerian Maritime Services Limited (NSML), Dr Effiong Ekanem-Attah, raised the concern at the 2026 Maritime Training Institute organised by the Association of Maritime Journalists of Nigeria (AMJON) in Lagos.

Ekanem-Attah, who represented the Managing Director of NSML, Abdulkadir Kere Ahmed, said the global maritime industry was becoming increasingly regulated, technology-driven and dependent on skilled professionals capable of operating under international standards.

Speaking on the theme: “The Power of Innovation in a Future-Ready Maritime Training Agenda,”  he said digitalisation, decarbonisation, automation and stricter safety requirements were reshaping shipping and increasing demand for competent maritime professionals.

He said that despite Africa’s strategic maritime location and extensive coastline, the continent had struggled to produce sufficient internationally certified seafarers to meet the demands of the global maritime labour market.

According to him, limited access to quality maritime training, inadequate simulator facilities, accreditation challenges and insufficient opportunities for practical sea-time were among factors responsible for the skills gap.

The situation, he said, had compelled many shipping companies operating in Africa to rely heavily on expatriates for critical technical and operational positions.

“Consequently, many shipping companies operating in and out of Africa have relied heavily on expatriate personnel for critical technical and operational roles,” he said.

Ekanem-Attah said closing the gap would require an integrated maritime manpower development system combining education, professional certification, practical sea-time, mentorship, technology, research and industry collaboration.

He said the NSML Maritime Centre of Excellence on Bonny Island, Rivers State, was established as part of efforts to address longstanding maritime manpower challenges.

According to him, the centre combines maritime training, simulator-based learning, sea-time development, professional certification support, research, consultancy and industry partnerships.

Ekanem-Attah said the centre had secured international accreditations, including ISO 9001:2015 Quality Management System, DNV standards for maritime simulator and training centres, United Kingdom Maritime and Coastguard Agency accreditation for six courses, Nautical Institute accreditation for Dynamic Positioning programmes, as well as accreditations from Marshall Islands, Bermuda and the Nigerian Maritime Administration and Safety Agency (NIMASA).

He said the accreditations would enable Nigerian and other African maritime professionals to obtain globally recognised qualifications locally instead of travelling abroad for specialist training.

The centre, he added, had invested in advanced facilities, including bridge and engine-room simulators and Dynamic Positioning systems, enabling trainees to simulate operational situations, emergency procedures and other risk-sensitive scenarios.

On the challenge of sea-time, Ekanem-Attah said NSML’s Seafarers Continuous Development Programme had provided opportunities for young professionals seeking to meet certification requirements.

He said 272 cadets had completed sea-time training through the programme, while another 54 were either in college or onboard vessels progressing towards professional certification.

“As of August 2026, NSML employs over 700 seafarers and remains the largest employer of qualified Nigerian seafarers,” he said.

Also speaking, the Lagos Port Complex Manager of the Nigerian Ports Authority (NPA), Mr Adebowale Lawal, who represented the Managing Director, Dr Abubakar Dantsoho, said technology alone could not transform the maritime sector without adequate human capital.

Lawal said digitalisation, artificial intelligence, automation, robotics and data-driven logistics were changing global port and shipping operations.

He said the NPA had deployed technology to improve efficiency, transparency, safety and service delivery, citing the Electronic Call-Up System, Electronic Access Control, digital revenue systems, vessel management platforms and the ongoing development of the Port Community System.

According to him, the Authority was also aligning its processes with the National Single Window to promote greater integration and electronic exchange of information among maritime stakeholders.

“These initiatives demonstrate that the future of our ports will depend increasingly on people who understand and can effectively deploy technology,” he said.

Lawal said maritime training institutions must produce professionals who were technically competent, innovative, adaptable and digitally literate, as the industry moves towards smart ports, autonomous and connected ships, cybersecurity systems, green shipping technologies and data-driven decision-making.

He urged greater collaboration among government, industry and training institutions to develop the manpower required to make Nigeria’s maritime sector globally competitive.

“Let us remember that innovation is not only about machines and technology; it is about people, ideas and the courage to do things better,” he said.

Lawal added that sustained investment in skills development would help Nigeria build a workforce capable of driving safer, smarter, greener and more efficient maritime and port operations.

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Energy

OPEC+ opts to retains oil production in October, as prices continue rising

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By Oluwayanmife Lucas, with agency reports

OPEC+ members yesterday at a virtual meeting agreed to keep oil production steady in October. This decision thus puts a stoppage to a six-month run of output increases as the group shifts its focus to determining new production quotas for 2027.

In a press statement uploaded on OPEC website shortly after the meeting, it noted that the producers agreed to have OPEC+ keep its oil output policy unchanged for ‌October as the producer group needs to agree new quotas before deciding its next output steps.

The meeting of seven core OPEC+ members — Saudi Arabia, ​Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman — comes as the Iran war continues to ​disrupt oil exports through the Strait of Hormuz, limiting OPEC+’s influence over prices ⁠and market share.

The pause comes as the war with Iran continues to disrupt oil exports through the Strait of Hormuz, reducing the ability of OPEC+ supply decisions to influence crude prices and the group’s market share.

Meanwhile oil prices continue its upward surge wit Brent yesterday selling at $96.28 and West Texas Intermediate selling at $91.48 respectively per barrel.

In August, OPEC+ agreed its production boost for September, completing a phased rollback ​of a 1.65 million-barrel-per-day supply cut first agreed in 2023. Despite the agreed production increases, ​the group made up of the Organisation of the Petroleum Exporting Countries and its allies, including Russia, still produces far below its targets because of the war.

“OPEC+ currently has ​very limited power over the physical oil market. The group ​can change production targets on paper, but it cannot guarantee that those barrels will be produced or ‌actually ⁠reach the market. The focus now shifts away from monthly production adjustments and towards the much more consequential debate over 2027,” said Jorge Leon of Rystad Energy.

OPEC+ still has another layer of production cuts in place, covering most members of the 21-country group until the end of 2026. Before the group decides ​how to unwind the ​cuts and return production ⁠to the market, it needs to review members’ oil production capacity to set 2027 output baselines, which form the basis for quotas.

According to sources who spoke to Reuters, this ​debate will likely happen later in 2026 and hence OPEC+ is ​likely to pause ⁠its output increases for the fourth quarter, sources earlier told Reuters.

Actual production remains well below the group’s targets amid the war and disruptions to regional oil flows. The gap means previously announced increases have had a more limited effect on physical supply than the headline quotas suggest.

The 21-member alliance, which includes the Organisation of the Petroleum Exporting Countries, Russia and other producers, still has another layer of production cuts scheduled to remain in place through the end of 2026.

Before deciding how quickly those remaining cuts can be unwound, members need to review their production capacity and establish new 2027 output baselines. Those baselines are critical because they determine the individual production quotas allocated to members.

Discussions over the new baselines are expected later this year, making a pause in output increases during the fourth quarter increasingly likely.

The expected decision also comes at an unusual time for the producer alliance. With the Strait of Hormuz disrupting exports, the amount of crude reaching global markets is being shaped more heavily by wartime shipping constraints than by adjustments to OPEC+ production targets.

That has limited the group’s traditional ability to manage supply and influence prices through coordinated output changes.

The seven countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation.

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Maritime

‘CVFF to revive indigenous shipbuilding, create 30,000 jobs’

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By Josephine Lucas
The Federal Government has said the disbursement of the Cabotage Vessel Financing Fund (CVFF) to qualified Nigerian shipowners will revive indigenous shipbuilding and create more than 30,000 direct and indirect jobs across the maritime sector.
Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, gave the indication while directing the Nigerian Maritime Administration and Safety Agency (NIMASA) to work with the 12 approved Primary Lending Institutions (PLIs) to accelerate the disbursement of the long-awaited fund.
Oyetola, in a statement issued yesterday by his Special Adviser, Dr Bolaji Akinola, said significant progress had been recorded in the processing of applications under the CVFF framework.
He disclosed that NIMASA had received 92 applications for funding, with 20 already submitted to the PLIs, while one application had been reviewed and forwarded for approval.
The Minister’s directive is aimed at ending more than two decades of delays that have prevented Nigerian shipowners from accessing the fund, which is expected to provide low-interest, long-term financing for the acquisition of modern vessels and expansion of indigenous fleets.
According to him, the fund will strengthen the capacity of Nigerian shipowners to compete for coastal and offshore shipping contracts, reduce dependence on foreign vessel operators and retain more value within the Nigerian economy.
Oyetola said the initiative could generate more than 30,000 direct and indirect jobs in shipyards, marine engineering firms and maritime logistics companies, while strengthening Nigeria’s domestic ship-owning and shipbuilding ecosystem.
The Minister said the Federal Government’s decision to commence the disbursement followed President Bola Ahmed Tinubu’s authorisation to address the long-standing financing challenges confronting domestic maritime operators and unlock the economic potential of the blue economy.
He recalled that in April 2025, he directed NIMASA to commence the process for the disbursement of the CVFF, marking what he described as a decisive break from years of administrative delays.
The process gathered momentum with the launch of the CVFF Application Portal in Lagos on January 22, 2026, providing a structured and transparent platform for eligible Nigerian shipowners to apply for financing.
Oyetola also expanded the number of PLIs from five to 12 in a bid to accelerate the processing and disbursement of the fund.
Beyond vessel financing, the Minister said the Federal Government was investing in the development of Nigerian seafarers through expanded training, certification and welfare initiatives.
He disclosed that 222 seafarers had received free training in basic and advanced professional courses, while 333 cadets had completed their academic training and obtained degrees.
Under the Nigerian Seafarers Development Programme (NSDP), he added, 135 cadets had completed the programme and obtained their Certificates of Competency (CoC).
Oyetola further disclosed that 7,059 Nigerian seafarers had been placed onboard vessels to acquire sea-time experience.
He said the interventions were part of the Federal Government’s broader strategy to build a competitive maritime workforce, strengthen indigenous capacity and ensure that Nigerians benefit directly from opportunities in the blue economy.
The Minister said the ongoing CVFF process represented an important step towards repositioning Nigeria’s indigenous shipping industry after years of limited access to maritime finance.
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