Lagos, Nigeria — In a bold move to protect Nigeria’s refining sector from further decline, Mr. Bayo Ojulari, Group Chief Executive Officer of NNPC Ltd., has dismissed the Managing Directors of the company’s three refineries: Kaduna, Port Harcourt, and Warri. This decision, effective immediately, comes as part of a wider plan described by Ojulari aimed at evaluating the conditions of NNPC’s refineries and identifying the best management strategies moving forward.
The restructuring primarily seeks to stop the continuous loss of value in the short term, while also setting the stage for a sustainable, long-term strategy that would ensure wealth maximization for the whole nation. A source familiar with the developments affirmed that this is just the beginning of transformative actions planned for the refineries.
As part of the overhaul, Ojulari has set up a high-level assessment team led by Executive Vice President, Downstream, Alhaji Mumuni Dagazzau. This team is tasked with conducting an immediate operational assessment across all NNPC refineries to ascertain their current operational states and to propose actionable recommendations.
President Bola Tinubu, who previously appointed Ojulari on April 2, is closely monitoring this situation, having invoked his powers under Section 59(2) of the Petroleum Industry Act 2021 to assemble an 11-member board for the NNPCL. Tinubu has also directed the new board to undertake a strategic portfolio analysis of NNPC-operated and Joint Venture Assets to align operations with the goal of enhancing value.
According to the President, restructuring the refineries is crucial as they have faced significant mismanagement in the past. “Our refineries have the potential to be world-class facilities, but we need to ensure strictly effective strategies and management to realize this vision,” he stated during recent discussions regarding the oil and gas sector.
Nigeria’s refining sector has long underperformed, contributing to a larger problem of fuel imports that drain foreign reserves. This decision signals a potential shift towards revitalizing domestic capacity and productivity in the crucial industry.
