BAYO OJULARI EXPLAINS THE CHALLENGES HINDERING NNPC REFINERIES

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By: Fasasi Hammad

Bayo Ojulari, CEO of Nigerian National Petroleum Company (NNPC) Limited, has explained that state-owned refineries in Nigeria have struggled to operate effectively because the focus has traditionally been on financing and contracting exploration, production, and construction (EPC) companies rather than on running the refineries themselves.

Speaking at the recently concluded Nigerian International Energy Summit (NIES), Ojulari said the problem stems from prioritizing EPC contracts and financing over long-term operational management.

“The reason our refineries haven’t worked is that we have concentrated on EPC and financing. Those financing the projects do so for profit, not for free. EPC contractors complete their jobs, get paid, and move on. Meanwhile, NNPC is left with operating the refineries for the next 20 to 40 years—and we’ve never fully focused on that,” he said.

He added that while operations and maintenance (O&M) have been discussed extensively, globally, effective O&M requires a strong operational excellence team to oversee the process. Without this, resources are often mismanaged.

“Again, O&M is another contract. You end up with financing, EPC, O&M—everyone taking money from the system without any real stake. That’s unsustainable. The system was designed to take, not to invest,” Ojulari explained.

He noted that the current NNPC leadership is now concentrating on the aspects that were previously neglected. “Having spent years building multi-billion-dollar facilities for IOCs, I know that from the start of a project, you need an operational assurance person to ensure that the facility can actually be operated efficiently,” he said.

Ojulari shared from his experience at Shell, where he participated in the commissioning of Qatargas. “From the beginning, I was part of the operations readiness team, auditing operational preparedness well before construction was completed. This early assessment identifies challenges and allows for the necessary resources and training to ensure smooth operation,” he said.

He emphasized the long-term perspective required for mega-projects: “You may spend 2–3 years planning, 3–5 years constructing, and 25–50 years operating. Your focus must be on ensuring operability from the outset.”

Ojulari also mentioned that NNPC is in discussions with a Chinese firm regarding a potential partnership for one of its state-owned refineries.