NNPCL Faces Heavy Criticism as $897m Warri Refinery Project Stalls

Warri Refinery

Despite hefty investments and presidential commendations, the dream of revitalizing Nigeria’s key refineries appears to be faltering, sparking outrage among industry experts and stakeholders.

Warri Refinery Shuts Down Just Weeks After “Rebirth”

The Nigerian National Petroleum Company Limited (NNPCL) is once again under scrutiny as its much-celebrated Warri Refinery, revamped at a staggering cost of $897 million, has remained non-operational since January 25, 2025.

A critical failure in the refinery’s Crude Distillation Unit (CDU) Main Heater raised safety concerns, forcing a complete shutdown barely a month after it was declared functional.

Documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reveal that the refinery, despite its fanfare reopening in December 2024, failed to produce even a litre of Premium Motor Spirit (PMS), commonly known as petrol.

Port Harcourt Refinery Operating Far Below Expectations

While the Warri Refinery remains silent, the Port Harcourt Refinery, recommissioned in November 2024 after a $1.5 billion overhaul, is grappling with its own troubles.

Contrary to official claims that it operates at 70% capacity, the NMDPRA’s latest report shows actual performance hovering around a disappointing 38% to 42%.

From November 2024 to April 2025, the Port Harcourt plant produced only 82.55 million litres monthly on average, falling significantly short of its estimated optimal output of 218 million litres.

Experts Call Out Transparency, Efficiency Failures

Industry players described the situation as “disheartening,” questioning NNPCL’s claims of transparency and operational efficiency.

The national oil company’s initial optimism, highlighted by former CEO Mele Kyari’s assurances, has rapidly eroded in light of these operational setbacks.

While Kyari had earlier lauded the team’s effort, stating, “This plant is running… although not 100% complete,” recent findings suggest the refinery’s actual performance tells a different story.

Production Data Paints a Grim Picture

A deeper dive into production figures shows that:

In November 2024, the Port Harcourt Refinery managed just 24.92% of its installed capacity.

December saw a temporary spike, but output still lagged far behind targets.

By March 2025, no PMS (petrol) was produced, with production focused almost entirely on diesel and kerosene.


Daily PMS trucking averaged 238,080 litres in November but plummeted to zero by March and April 2025.

Celebrations Cut Short Amid Operational Struggles

Despite President Bola Tinubu’s endorsement of the refinery projects as milestones for achieving energy sufficiency and boosting export capacity, the reality on ground reflects ongoing challenges.

The Petroleum Products Retail Outlets Owners Association of Nigeria had praised the Port Harcourt Refinery for running 180 days straight, yet detailed data contradicts claims of consistent, high-capacity operations.

What Lies Ahead?

With public trust hanging by a thread, industry experts urge for an immediate and transparent overhaul of refinery management and operations.

If Nigeria hopes to achieve energy sufficiency and cut its reliance on fuel imports, a radical shift in project execution, oversight, and maintenance culture is crucial.


Stay updated with the latest developments on Nigeria’s energy sector! Follow NIGPOST for exclusive reports, expert insights, and breaking news.

Share your thoughts below: Do you believe Nigeria’s refineries can truly return to full capacity?

 

About Abdulmajeed 2855 Articles
Crafting compelling news articles that keep NIGPOST audiences informed and inspired.  

Be the first to comment

Leave a Reply

Your email address will not be published.


*