Paragraph 1: The Troubling State of Nigeria’s Refineries
The operational integrity of the Nigerian National Petroleum Company Limited (NNPCL) has come under intense scrutiny, with industry operators and experts raising serious concerns about transparency, efficiency, and management of Nigeria’s refineries. The Warri Refining and Petrochemical Company (WRPC), despite consuming $897.6 million in maintenance costs, has been shut down since January 25, 2025, barely a month after its declared operational status. This shutdown stems from safety issues related to the Crude Distillation Unit Main Heater, a critical component of the refinery. Adding to the woes, the Port Harcourt Refining Company (PHRC), which resumed operations in November 2024, is operating significantly below its capacity, further exacerbating Nigeria’s fuel production challenges.
Paragraph 2: The Short-Lived Resurgence of the Warri Refinery
The WRPC, with a capacity of 125,000 barrels per day, had been dormant for years before being revived by the NNPCL on December 30, 2024. This revitalization was initially celebrated as a significant achievement, with former NNPC Group Chief Executive Officer, Mele Kyari, leading a tour of the facility and emphasizing its operational status. President Bola Tinubu also commended the NNPCL for the refurbishment. However, the refinery’s operational life was short-lived, and the subsequent shutdown has raised questions about the true extent of the refurbishment and the long-term viability of the facility. The optimistic pronouncements by Kyari and the initial fanfare surrounding the refinery’s restart now stand in stark contrast to the reality of its current inactive state.
Paragraph 3: Port Harcourt Refinery’s Underperformance
The PHRC, despite its much-anticipated revitalization and a $1.5 billion rehabilitation project, has consistently operated below 40% of its 60,000 barrels per day capacity. This contradicts claims by NNPCL spokesperson, Femi Soneye, who asserted the refinery was operating at 70% capacity. Data obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reveals that the refinery’s output between November 2024 and April 2025 was significantly lower than its estimated optimal production. This underperformance undermines the stated goals of the rehabilitation project, which aimed to restore the refinery to full operational status and contribute to Nigeria’s energy sufficiency and security.
Paragraph 4: Detailed Analysis of Production Shortfalls
A comprehensive analysis of production data from the PHRC reveals a pattern of erratic output and significant shortfalls. While production briefly surged in December 2024, it consistently failed to reach the expected levels and experienced further declines in subsequent months. The refinery’s production of Premium Motor Spirit (PMS) blending components, Automotive Gas Oil (AGO or diesel), and Household Kerosene (HKK) all exhibited fluctuations and ultimately fell short of projected targets. This data not only highlights the refinery’s operational inefficiencies but also contradicts claims made by various stakeholders, including the Petroleum Products Retail Outlets Owners Association of Nigeria, which commended the refinery’s supposed continuous operation for 180 days.
Paragraph 5: Reactions and Criticisms from Industry Stakeholders
The NNPCL’s silence on the refineries’ performance has amplified skepticism among industry operators and energy analysts. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed disappointment and called for urgent reforms and accountability within the refinery sector. He urged President Tinubu to declare a state of emergency on the refineries and conduct a comprehensive review of staff and operations. Petroleum expert Bala Zaka criticized the lack of tangible benefits from the refineries’ purported functionality, noting that the prices of petroleum products remain high despite claims of increased production. While Zaka advocates for government intervention to ensure the refineries’ functionality, he firmly opposes privatization, citing the successful operation of state-run refineries in other OPEC countries.
Paragraph 6: Accusations of Mismanagement and Propaganda
Dan Kunle, an oil and gas expert and former adviser to a former Minister of State for Petroleum Resources, described the rehabilitation of the Port Harcourt and Warri refineries as a "scandal." He accused former NNPCL GCEO Mele Kyari of misleading Nigerians with propaganda and failing to deliver on promised projects. Kunle argued that Kyari’s team prioritized personal enrichment over national interests and did not complete any significant projects during their tenure. He questioned the true operational status of the refineries and criticized the diversion of funds from the upstream sector to the midstream and downstream, which he believes yielded no tangible benefits for the Nigerian economy. Kunle’s sharp critique underscores the deep-seated concerns surrounding the management and performance of Nigeria’s refining sector.
