Industry stakeholders are raising fresh concerns about the Nigerian National Petroleum Company Limited (NNPCL), particularly questioning its transparency, efficiency, and the management of the nation’s refineries.
This comes as the Warri Refining and Petrochemical Company has remained shut since January 25, 2025, due to critical faults in its Crude Distillation Unit Main Heater that posed safety risks.
According to a report obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), despite an estimated $897.6 million spent on maintenance, the Warri refinery failed to deliver any output and was closed just a month after then-GCEO, Mele Kyari announced its operational status.
Similarly, the Port Harcourt Refining Company, which was restarted in November 2024, has been functioning at less than 40% of its installed capacity.
Data shows the refinery produced an average of 82.55 million litres of refined products monthly between November 2024 and April 2025, far below its expected output of 218 million litres per month.
While the NNPCL had claimed the Port Harcourt plant was operating at 70% capacity with plans to ramp up to 90%, actual performance data paints a different picture.
In fact, the refinery’s production peaked at just 42.2% in January before declining steadily in the following months.
Notably, it produced no Premium Motor Spirit (PMS) in March and April, although diesel output increased during the same period.
The Warri refinery, with a 125,000 barrels-per-day capacity and reactivated on December 30, 2024, reportedly managed minimal production in December and January before shutting down. NNPCL maintained that the closure was planned to facilitate routine maintenance, though no specific timeline was provided for its resumption.
Stakeholders such as Chief Chinedu Ukadike of the Independent Petroleum Marketers Association of Nigeria have expressed frustration, calling the situation “disheartening” and urging the government to declare a state of emergency on Nigeria’s refineries.
He criticized the inefficiency and lack of accountability, suggesting that the current setup leaves the market overly reliant on Dangote Refinery, thereby eliminating healthy competition.
Petroleum expert Bala Zaka questioned the functional status of the refineries, arguing that the lack of significant price reductions in petroleum products is proof they are not delivering real value.
Despite this, he opposed calls for privatisation, noting that other OPEC nations successfully run state-owned facilities.
Meanwhile, energy analyst Dan Kunle labelled the Port Harcourt and Warri refinery rehabilitation projects a “scandal,” accusing the previous NNPC leadership of using the initiatives for personal gain rather than national benefit.
He commended the appointment of Bayo Ojulari as the new GCEO, calling it a long-overdue corrective step.
