Nigeria’s Refinery Crisis: NNPCL Faces Backlash Over $897m Warri Failure
Nigeria’s state-owned refineries, managed by the Nigerian National Petroleum Company Limited (NNPCL), are embroiled in controversy as the $897 million revamp of the Warri Refining and Petrochemical Company (WRPC) fails barely a month after its relaunch. Meanwhile, the Port Harcourt Refinery struggles to hit 40% capacity, raising questions about transparency, efficiency, and accountability in the nation’s oil sector.
Warri Refinery Shutdown: A Costly Misstep
The Warri refinery, revived in December 2024 after decades of inactivity, was shut down on January 25, 2025, due to critical safety issues in its Crude Distillation Unit (CDU) Main Heater. Despite claims by former NNPCL CEO Mele Kyari that the facility was operational at 60% capacity, internal documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reveal it produced zero Premium Motor Spirit (PMS) and remained idle for months.
- Cost: $897.6 million spent on maintenance.
- Shutdown Reason: Safety risks in CDU Main Heater.
- Impact: No PMS production, minimal diesel and kerosene output before closure.
Port Harcourt Refinery: Below-Par Performance
The Port Harcourt Refinery, recommissioned in November 2024, has operated at under 40% capacity despite NNPCL’s claims of 70% functionality. Key findings from NMDPRA reports show:
-Monthly Output (Nov 2024–April 2025): Averaged 82.55 million litres vs. an optimal 218 million litres.
- Product Breakdown:
- Diesel (AGO):55.1 million litres peak in January.
- PMS Blending Components:Dropped to zero by March 2025.
- Funding: $1.5 billion loan-backed rehabilitation project.
Expert Reactions: Calls for Accountability
Industry stakeholders and energy analysts condemn the mismanagement and lack of transparency:
1. Chinedu Ukadike (IPMAN):
“A $897m refinery shutdown in two months is a national disgrace. Urgent reforms and accountability are needed.”
2. Bala Zaka (Petroleum Expert):
“If refineries were functional, fuel prices would drop. Nigerians see no benefits.”
3. Dan Kunle (Energy Analyst):
“The refinery revamp is a scandal. NNPCL prioritized propaganda over real progress."
Why Did the Revamps Fail?
- Warri Refinery: Poor maintenance planning, technical inefficiencies.
- Port Harcourt:Delays, missed deadlines, and underfunded upgrades.
- Systemic Issues: Lack of skilled oversight, alleged fund misallocation.
The Bigger Picture: Nigeria’s Refinery Woes
Nigeria’s reliance on imported fuel continues as Dangote Refinery remains the sole major supplier. Experts argue:
State-run refineries in OPEC nations (e.g., Saudi Arabia) thrive—why not Nigeria?
Privatization debates persist, but experts urge fixing existing infrastructure first.
Calls to Action
- Audit NNPCL: Investigate fund utilization and project execution.
- Declare Emergency: Overhaul refinery management and staff competency.
- Boost Transparency: Publicize real-time production data to rebuild trust.
Final Thoughts
The NNPCL’s refinery failures highlight systemic issues in Nigeria’s oil sector. With fuel prices soaring and public trust eroding, urgent intervention is needed to salvage these critical assets. Share your thoughts: Should Nigeria privatize its refineries or prioritize fixing state-owned facilities?
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