Warri, Delta State — The Nigerian National Petroleum Company Limited (NNPCL) has come under intense criticism from energy stakeholders and industry analysts over the shutdown of the Warri Refining and Petrochemical Company (WRPC), despite a reported $897.6 million overhaul.
The refinery, which was declared operational in December 2024 following years of dormancy, ceased operations on January 25, 2025, owing to safety faults in its Crude Distillation Unit’s Main Heater, according to a regulatory document from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
This disclosure has reignited questions surrounding the transparency, efficiency, and credibility of NNPCL’s handling of Nigeria’s refinery assets. Experts expressed disappointment, noting that the Warri plant, despite its 125,000 barrels-per-day capacity and recent refurbishment, failed to produce Premium Motor Spirit (PMS) before its closure.
Located in Ekpan and Ubeji areas of Warri, WRPC was initially commissioned in 1978 to serve the southern and southwestern regions of Nigeria. The facility also houses petrochemical units capable of producing thousands of metric tonnes of polypropylene and carbon black annually.
When the Warri refinery was relaunched in late 2024, the NNPCL touted the achievement as a major milestone. Former Group CEO, Mele Kyari, during a facility tour, declared the refinery “operational,” claiming visible progress and commending his team for restarting a previously dormant plant.
However, internal production data obtained by The PUNCH and verified by NMDPRA indicate the refinery has remained idle since late January. Similar concerns trail the Port Harcourt Refinery, which, though recommissioned in November 2024, is reportedly operating at less than 40% of its capacity.
The Port Harcourt plant, with a 60,000-bpd nameplate capacity, managed an average monthly output of just 82.55 million litres of refined products between November 2024 and April 2025—far below its estimated 218 million litres per month.
Contradicting official claims that the refinery was operating at 70% capacity with plans to reach 90%, data shows consistent underperformance, particularly in PMS production. While diesel output remained relatively stable, the evacuation of petrol dropped significantly, hitting zero in March and April.
The $1.5 billion Port Harcourt refinery revamp, funded by international loans, was expected to deliver 1.4 million litres of PMS daily, along with substantial volumes of diesel, kerosene, LPG, and Low Pour Fuel Oil. Despite earlier presidential commendations and media tours showing loaded petrol trucks, actual figures suggest underwhelming delivery against expectations.
Production breakdowns showed erratic performance: from a low of 9.51 million litres in November 2024 to a peak of 120.91 million litres in January 2025, before declining again in February and March. By mid-April, just 44.24 million litres had been produced, representing about 35.7% of target capacity.
Meanwhile, WRPC managed modest output before its shutdown, recording 1.96 million litres of diesel and 2.84 million litres of kerosene in December 2024, with slight increases in January before operations were halted.
Responding to inquiries, NNPCL spokesperson Femi Soneye declined to comment. However, a February statement noted that the Warri facility was undergoing routine maintenance and denied reports of any explosion.
Soneye stated the shutdown was intentional to facilitate critical repairs and upgrades for sustained operations, including work on instruments affecting output quality. He assured that the plant would resume operations shortly.
Despite this, industry stakeholders are unimpressed. Chief Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), described the situation as wasteful and urged President Bola Tinubu to declare a state of emergency on Nigeria’s refineries. He questioned the rationale of spending vast public funds only to have the facility shut down within weeks of relaunch.
Ukadike criticized the monopoly held by Dangote Refinery due to the inefficiencies of state-run plants, noting that such dominance undermines deregulation goals and market competition.
He stressed that true reform must include liberalizing product sourcing and improving efficiency across all refineries.
Similarly, petroleum analyst Bala Zaka questioned the tangible benefits of NNPCL’s efforts. He argued that until refinery operations translate into noticeable price reductions in diesel, petrol, and gas, the technical claims of functionality remain unconvincing.
Zaka, however, opposed the idea of privatizing the refineries, asserting that with proper leadership, state-run refineries can operate successfully—citing other OPEC nations as examples.
In his own reaction, former adviser to the Minister of Petroleum Resources, Dan Kunle, labelled the entire rehabilitation exercise of the Port Harcourt and Warri refineries a “scandal,” citing the repeated failures and unfulfilled promises despite substantial investments.
The growing criticism highlights widespread disillusionment with NNPCL’s refinery turnaround program, which was meant to restore national refining capacity and reduce reliance on imports—but appears, instead, to have deepened concerns over mismanagement and missed opportunities.
By Taiwo Olatinwo| April 30, 2025.
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