Nigeria National Petroleum Company Limited’s Group Chief Executive Officer, Bayo Ojulari, revealed on Thursday that he and his management team face serious security challenges.
Speaking during a meeting with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja, Ojulari emphasized his commitment to sustaining long-term reforms despite the pressures.
Ojulari dismissed rumors suggesting President Bola Tinubu has forced the company into unrealistic performance targets. Instead, he clarified that the President’s directive focuses on implementing lasting improvements to the organization’s operations.
Ojulari disclosed that every senior manager is currently subject to legal proceedings of various kinds. He said that they are continuously targeted, yet they remain determined to fulfill the President’s vision. He also said that their opponents will not halt the company’s progress.
The CEO attributed their continued underperformance to years of neglect, despite investments totaling nearly $3 billion towards rehabilitation. He detailed how the Port Harcourt refinery, in operation as a single integrated facility rather than two separate plants as commonly believed, processes only about 40 percent of the crude oil fed into it. This inefficiency results in monthly financial losses estimated between N300 million and N500 million.
Following a comprehensive technical and commercial audit, Ojulari revealed that the preferred course involves partnering with seasoned international refining companies. Ojulari said they are actively discussing collaborative arrangements with global experts to jointly operate the refinery and to improve output.
Recognizing that the overhaul of such a complex and politically sensitive sector inevitably encounters resistance, Ojulari stressed his resolve to avoid shortcuts or politically motivated decisions. Ojulari said that the President has not imposed inappropriate expectations and that their mission is to champion sustainable development, not to perpetuate losses.
PENGASSAN President Festus Osifo praised the management team for reaching the company’s first-ever Collective Bargaining Agreement (CBA) that is widely accepted by workers. He also lauded their strides in reducing oil theft and restoring pipeline integrity, resulting in boosted crude production figures.
However, he encouraged the company to consider reducing government stakes in refineries and allowing the private sector to assume majority control, which he believes would enhance efficiency and diminish political interference.
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