Foremost energy expert and Professor Emeritus of Petroleum Economics, Prof. Wumi Iledare, has reacted to the Nigerian National Petroleum Company Limited, NNPCL, boss, Bayo Ojulari’s remarks on the state-owned Port Harcourt, Warri, and Kaduna refineries.
Prof. Iledare said Ojulari’s admittance of realism, which prompted the pause of the refineries, signals that the existing structure risks destroying value rather than creating it.
He disclosed this in his commentary sent to DAILY POST on Wednesday.
Recall that Ojulari, in an interview at the Nigeria International Energy Summit (NIES) 2026 in Abuja on Wednesday, defended why NNPCL paused operations of its refineries, citing inefficiencies.
Reacting, Prof. Iledare said that refinery rehabilitation should be treated as a capital investment decision, not a symbolic national project.
He explained that putting funds into assets with inefficient operating models does not lead to recovery but compounds losses.
Prof. Iledare said GCEO’s remarks on its refineries suggest that Nigeria’s refinery problem is systemic rather than cosmetic.
However, he cautioned that the real danger now is inertia, saying structural reforms must not become an indefinite pause.
“His justification for pausing the rehabilitation of the state refineries was stripped to its essentials: the current structure risks destroying value rather than creating it. That is the question that should have guided policy from the beginning.
“Refinery rehabilitation is not a symbolic national project; it is a capital decision.
“Pouring funds into assets whose operating model remains inefficient does not produce recovery—it deepens loss. Distressed industrial assets fail primarily because of structural weaknesses, not funding gaps.
“The GCEO’s remarks signal recognition that Nigeria’s refinery challenge is systemic, not cosmetic.
“What stands out most is the candor. Public energy conversations rarely admit value destruction. By stating it plainly, the GCEO signaled a shift from managing perception to confronting economic reality. The refinery pause should therefore be read not as a retreat, but as a diagnostic reset.
“The risk now is inertia. Structural reform must not become another indefinite holding pattern. Partnerships must be credible, governance transparent, and performance measurable.
“If execution matches intent, this moment could mark a turning point in how Nigeria manages strategic energy infrastructure—replacing sentimental asset management with disciplined value creation. That shift would matter far more than the fate of any single refinery,” he stated.
DAILY POST reports that NNPCL announced the shutdown of the Port Harcourt refinery in May 2025 for structural assessment. Since then, the plant has remained closed.
NNPCL refineries shutdown necessary reset – Iledare
