NNPCL in Crisis: $897M Warri Refinery Revamp Fails Internacional Edición (English)

• The Warri refinery closure has been ongoing since January 25, while the Port Harcourt refinery is operating below 40% of its production capacity.

Operators and specialists within the industry have raised doubts about the operational integrity of the Nigerian National Petroleum Company Limited, specifically concerning issues of transparency, efficiency, and the general oversight of Nigeria’s refineries under its control.

Following the disclosure that the Warri Refining and Petrochemical Company has been inactive since January 25, 2025, because of concerns related to the safety of its Crude Distillation Unit Main Heater, this situation persists.

A document dated April 2025 from the Nigerian Midstream and Downstream Petroleum Regulatory Authority disclosed details about the Midstream and Downstream sectors. The report indicated that a particular refinery, despite having spent $897.6 million on maintenance, did not generate anyPremium Motor Spirit (commonly known as petrol). It was also noted that this refinery ceased operations shortly after being inaugurated by the previous NNPC Group Chief Executive Officer, Mele Kyari.

Industry participants and specialists characterized this situation as discouraging, whereas additional data revealed that the Port Harcourt Refining Company, which restarted operations in November 2024, has been functioning at less than 40 percent of its capacity.

According to The PUNCH, the Warri Refinery, with a daily production capacity of 125,000 barrels, which has remained non-functional for many years because of technical problems, was restarted by the country’s petroleum corporation on December 30, 2024.

Located in the regions of Ekpan, Uwvie, and Ubeji within Warri, the petrochemical facility boasts an annual output capability of 13,000 metric tons of polypropylene along with 18,000 metric tons of carbon black.

Launched in 1978, the WRPC is managed by the NNPC with the aim of serving the demands in Nigeria’s southern and southwestern market areas.

According to The PUNCH, President Bola Tinubu praised the NNPCL for finishing the revamp of the Warri refinery, capable of processing 125,000 barrels per day. It was stated that this facility began functioning at an initial rate of 60 percent capacity.

This initiative is centered around generating and retaining key materials such as Straight Run Kerosene, Automotive Gas Oil (diesel), along with both heavy and light Naphtha.

Before the tour following the rejuvenation, Kyari addressed his team stating that many Nigerians have their doubts about the authenticity and feasibility of such initiatives within the nation. However, he firmly asserted that this revitalization project is both legitimate and tangible.

Kyari stated, "We will guide you through our facility which is currently operational. Though it isn’t entirely finished yet, we’re making progress. A lot of individuals believe such accomplishments aren’t genuine here. They doubt what’s feasible within this nation. Our aim is for you to witness firsthand that this endeavor is indeed real."

“I must congratulate our team for their determination and extreme belief that this company can restart this plant. This has brought the result we are seeing in collaboration with our contractors. We have proved that it is possible to restart a plant that you deliberately shut down. We have proved this.”

Yet, the document acquired solely from the NMDPRA, which includes comprehensive production statistics for every refinery within the nation, disclosed that the Warri Refining and Petrochemical Company, despite having a stated capacity of 125,000 barrels per day, has been inactive since January 25, 2025.

The report connected the closure to significant issues within the Crude Distillation Unit Main Heater of the refinery, sparking safety worries and necessitating an entire cessation of activities.

"The Warri Refining and Petrochemical Company ceased operations on January 25, 2025, because of safety issues related to the CDU Main Heater," the document indicated.

The statement also indicated that the Port Harcourt refinery, which has a designed output of 60,000 barrels per day, has only managed to operate at approximately 37.87 percent of its intended capacity half a year following its much-anticipated rejuvenation.

The refinery's monthly production figures indicated an average output of 82.55 million liters of refined petroleum products from November 2024 through April 2025, which was 135.45 million liters below the anticipated optimal level of 218 million liters per month.

The most recent updates contradict statements made by the NNPCL representative, Femi Soneye, who claimed that the Port Harcourt refinery restarted on November 26, 2024, was functioning at 70 percent of its designed capacity, with intentions to boost production to 90 percent in following months.

The refinery produces Premium Motor Spirit blend ingredients like Straight-Run Gasoline and Straight-Run Naphtha, along with Automotive Gas Oil (diesel). With its Hydrocracker Unit, the facility generates higher-grade products including jet fuel, Household Kerosene, liquefied petroleum gas, and naphtha.

Upon its recommencement, the government-run company announced that the Port Harcourt refinery would generate daily yields of 1.4 million liters ofStraight-Run Gasoline mixed withPremium Motor Spirit, 900,000 liters ofKerosene, 1.5 million liters ofAutomotive Gas Oil, 2.1 million liters ofLow Pour Fuel Oil, along with extra quantities ofLiquefied Petroleum Gas.

The $1.5 billion recovery initiative, financed via a loan arrangement supported by global financial organizations, aimed to bring the government-run site back to full functionality following an extended period of inactivity and seven delays.

The PUNCH remembers multiple deadlines set for starting fuel production at the Port Harcourt refinery, with the most recent setback happening in September 2024 instead of the previously planned date in December 2023.

At the inauguration, representatives from NNPC toured the premises and collected specimens of gasoline, diesel, and kerosene. They mentioned that approximately 200 fuel lorries would be dispatched to the Nigerian market each day.

Similarly, President Tinubu, in celebrating the restart, stated that it would contribute to achieving energy sufficiency, enhancing energy security, and boosting Nigeria’s export capacity.

"In line with the Renewed Hope Agenda aimed at fostering shared economic prosperity for everyone, the President reiterated his administration’s dedication to ensuring energy self-sufficiency, improving energy security, and increasing export capabilities for Nigeria," as stated by the presidency.

The Nigerian Petroleum Products Retail Outlets Owners Association recently praised NNPC for operating the rejuvenated Port Harcourt Refinery continuously for 180 days without interruption. In an announcement made via a statement penned by their national public relations officer, Dr Joseph Obele, they noted that this facility had remained idle for more than two decades prior.

He mentioned that the organization’s representatives were taking delivery of diesel and Dual Purpose Kerosene from the refinery, whereas NNPC Ltd.’s retail distributors were collecting PMS.

Obele stated, "Commissioned in October 2024, this system has operated without interruption for 180 consecutive days until March 2025. This achievement highlights the success of the rehabilitation initiative."

However, the updated report detailing the actual condition of the refinery stated that the plant did not surpass 42.23 percent of its operational capacity during the six-month timeframe. The document revealed that the facility generated higher volumes of diesel compared to PMS blending components such as Straight-Run Gasoline and Straight-Run Naphtha.

The overall production volume was calculated based on the combined output of different refined petroleum products such as blending components for PMS, AGO, and HKK. Oil and gas specialists indicate that heating and refining a single barrel of crude yields approximately 159 liters of finished goods.

An analysis showed that in November, the refinery generated only 9.51 million liters, which is considerably lower than its maximum output capability of 38.16 million liters. This equates to merely a 24.92 percent efficiency level, resulting in a deficit of 28.65 million liters.

In December, the refinery experienced a significant surge in production, which climbed by 1,044 percent to reach 108 million liters. Despite this boost, the output did not meet the anticipated monthly target of 286.20 million liters, operating at merely 38.01 percent of its capacity and resulting in a considerable deficit of 177.41 million liters.

In January, the refinery generated 120.91 million liters of refined goods, which accounts for only 42.2 percent of its total 286.20 million-liter capacity, as indicated by the production statistics.

Following this, there was a minor drop in February when 111.81 million liters were produced, representing 39.1 percent of the refinery's overall capacity. The decrease continued into March with production falling to 100.03 million liters, constituting 35 percent of the anticipated monthly output.

During the initial 13 days of April, the refinery generated 44.24 million liters, which represents 35.7 percent of the targeted monthly production capacity of 124.02 million liters.

An in-depth item-by-item examination of the refinery’s products shows considerable variations in production levels among different categories. During November, the facility manufactured 4.38 million liters of PMS, this figure jumped to 40.32 million liters in December, and then saw further growth in January with 41.76 million liters being produced.

Nonetheless, production decreased to 39.34 million liters in February and declined further to 34.21 million liters in March, dropping even more to 15.22 million liters during the initial 13 days of April.

ForAGO, often referred to as diesel, the refinery manufactured 3.49 million liters inNovember, which surged significantly to 40.72 million liters inDecember. Production reached its zenith at 55.10 million liters inJanuary before experiencing minor declines to 47.33 million litersinFebruary, 45.38 million liters inMarch, and 18.96 million liters during part ofApril.

The HKK production experienced moderate yet significant fluctuations, starting at 1.64 million liters in November and then surging dramatically to 27.75 million liters in December. However, this was succeeded by a decline to 24.05 million liters in February and 25.14 million liters in March, prior to dropping even lower to 10.06 million liters in April. These figures underscore the inconsistent output of the refinery concerning major petroleum products, highlighting persistent difficulties in achieving targeted yields and maintaining operational effectiveness.

The daily average for November indicated that the facility transported around 238,080 liters of petrol (PMS) each day. This figure surged to approximately 538,600 liters per day in December. Nonetheless, the output declined in January, averaging about 275,630 liters of PMS and 347,380 liters of diesel daily. By February, the refinery’s output shifted again, with an average daily production of roughly 85,480 liters of PMS and 639,240 liters of diesel, showing yet another decrease in PMS volume.

Notably, the refinery reported zero liters of PMS evacuation for both March and April, highlighting a substantial deficit. Conversely, diesel output saw a sharp rise, averaging 865,110 liters per day in March and increasing to an average of 968,460 liters per day during the first two weeks of April.

The Warri refinery, which has been closed for four months, generated 1.96 million liters of Automotive Gas Oil (AGO) and 2.84 million liters of Hesko Kerosene (HKK) in December. In January 2025, it produced 10 million liters of AGO and 12 million liters of HKK.

When reached out to by our correspondent, an NNPCL representative chose not to provide comments on the matter. Attempts to contact him via WhatsApp did not receive any response. However, Soneye issued a statement in February acknowledging that the facility was going through scheduled preventive maintenance designed to ensure peak performance.

As he stated, activities at WRPC ceased temporarily to conduct necessary repair work for improved service efficiency. Additionally, he mentioned that regular upkeep was ongoing and services would resume within the coming days.

The statement said, "NNPC Ltd wants to confirm that there has been no explosion at the Warri Refining and Petrochemical Company. Reports indicating such an event occurred are entirely untrue."

On January 25, 2025, intentional shutdowns took place in WRPC Area 1 to perform crucial maintenance on specific machinery, such as field instruments which had been hindering smooth and reliable operation.

These interventions are crucial for producing specified final and intermediate goods, notably Automotive Gas Oil and Kerosene. Routine maintenance is proceeding according to schedule, with operations expected to resume within the coming days.

Operators, experts react

The corporation’s lack of communication has only intensified doubt amongst industry professionals and energy experts, who contend that substantial investments in Nigeria’s government-owned refineries have produced minimal concrete outcomes.

Regarding the progress, Chief Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, expressed his disappointment, terming the scenario "disheartening." He emphasized the necessity for immediate changes and transparency in the country's struggling refinery industry.

He similarly encouraged the President to announce a state of emergency concerning the refineries and conduct an extensive assessment of both the employees and workforce at the site.

He stated, "The previous administration’s declaration about restarting operations at these two refineries brought great comfort to both fuel distributors and everyday drivers across the country. This was indeed a crucial statement offering everyone the chance to purchase oil products from sources like Dangote, Port Harcourt, or Warri refinery."

However, it is extremely disappointing that a refinery which consumed substantial funds has been closed after operating for just under two months. This represents an utter wastage, and those involved should face accountability. Additionally, I encourage the President to conduct a thorough assessment of the personnel at all these refineries and consider declaring a state of emergency regarding their situation.

It’s not just in Rivers State where we can impose a state of emergency; it could also apply to an entity into which significant efforts have been invested but finds itself incapacitated. Now, our situation leaves us at the mercy of Dangote, who monopolizes petroleum products and engages in profit-making. As distributors, we’ve resisted this arrangement, making it unfavorable for us since genuine competition does not exist.

Nevertheless, he pointed out that even as marketers stay dedicated to their purchasing and sales efforts, deriving benefits from various product sources would prove more advantageous.

“When you talk about the implementation of the Petroleum Industry Act, you must talk about it holistically. Allowing marketers to liberalise the market and be able to buy from wherever they want to source products. Now, we have a mono-source, and anytime Dangote reduces, everyone has to follow, losing billions of naira.

“There is no business anywhere because the beauty of deregulation is competition. You can’t open a refinery, and on the resumption, it would load only four trucks, which is disheartening. The next day, you load six trucks, epileptic loading for a refinery that has gulped so much of our nation’s wealth,” Ukadike stated.

A petroleum specialist named Bala Zaka criticized the functioning of government-run refineries, noting that even though they claim to be operational, Nigerians haven’t experienced lower costs for diesel, gasoline, or other fuel types.

Zaka, speaking in a telephone interview said, “As far as I am concerned, the workability of any aspect of a country’s economy is supposed to be seen practically in the way and manner prices of goods and services come down. And as far as the output of the state-owned refinery is concerned, this objective has not been achieved. If the price of diesel, petrol, and other petroleum products doesn’t reduce, then all the technicalities don’t make any sense.

If our state-owned refineries were genuinely operational as the government asserts, Nigerian citizens would have witnessed significant decreases in the costs of diesel, petrol, cooking gas, and various other products by this point. However, up until now, none of these prices have dropped, indicating that there is no evidence supporting their effective functionality.

Nevertheless, the expert strongly dismissed demands for privatizing the refineries, stressing that OPEC member nations effectively manage their government-owned refining facilities.

He insisted that the government must take comprehensive and decisive action to restore and maintain the full functionality of its own refineries, rather than relinquishing control to private interests.

A petroleum industry specialist and ex-adviser to a previous Minister of State for Petroleum Resources, Mr Dan Kunle, labeled the refurbishment of the Port Harcourt and Warri refineries as a scandal.

Kunle stated this while fielding questions on Diaspora Dialogues, an online panel discussion.

In response to queries posed by Professor Farooq Kperogi and fellow panellors regarding the topic 'Kyari Departed, Ojulari Arrived: Politics and Corruption within the NNPC', Kunle stated that both the dismissal of Mele Kyari and the naming of Bayo Ojulari as the Group Chief Executive Officer of the Nigerian National Petroleum Corporation were matters that had been pending for quite some time.

The energy specialist contended that Kyari failed to finish even one project during his tenure at the NNPC, asserting that the widely praised refurbishment of the Port Harcourt and Warri refineries was nothing more than misinformation aimed at misleading Nigerians.

He said that the previous NNPC group amassed wealth for themselves without generating significant benefit for the nation.

Ojulari's selection is the highly anticipated appointment I've been hoping for since way back in 2021. Anyone can review my past statements and interactions with the former leadership of the NNPC. I expressed that those individuals were incapable of bringing anything positive to this nation.

I was adamant because I was aware of their lack of competence, inefficiency, and sense of responsibility at that location. I selected my words deliberately. Therefore, regardless of whether Bayo Ojulari or another capable individual had been chosen to replace Mele, I am among the most delighted individuals due to President Bola Tinubu’s decision. The timing of this choice was even tardy.

There was a period on TV when I stated that if I had the opportunity to meet President Tinubu, I would ask him: Mr. President, when will you remove Kyari from his position and replace them with someone more capable in Nigeria? This new individual could come from Maiduguri or any part of the country.

There are skilled individuals hailing from various parts of Nigeria. My aim is simply to have a truly capable individual step into Mele's role. This decision stems from my belief that the team wasn’t set to bring about positive change for our nation. Indeed, this conviction held true as evidenced by their performance; they failed to exceed an output of 1.7–1.8 million barrels of oil daily over the past six years. Just consider the challenges we've faced.

"And none of their projects were ever finished. Even the sole project, the Escravo-Lagos gas pipeline, which was supposedly completed, couldn’t be put into effective operation. Therefore, I am well-informed when I say this. The appointment of Ojulari is highly fitting, perfectly timed, and greatly appreciated within the sector. Please consider my statement as representing the views of the entire industry," Kunle asserted.

Regarding the NNPC refineries, Kunle contested the claims that Kyari managed to revive the idle plants following numerous failed attempts over the years.

You see, when government officials utilize our funds for media campaigns aimed at defaming citizens with false information and propaganda, it deeply troubles me. Given my substantial knowledge and comprehension of this sector, witnessing high-ranking public servants misuse our resources through the media to misrepresent facts to the general populace causes significant distress. Additionally, these officials often manage to gain support from various sections of both the media and labor unions.

They resorted to bringing back former Group Managing Directors to support his candidacy (Kyari). If your work is truly exceptional, everyone would clearly see that you’re performing excellently. As for those initiatives they attribute to him—did he personally oversee their implementation? Did he lead the development of the Dangote Refinery? The engineering, procurement, construction, installation, and commissioning of the Dangote Refinery were handled by Edwin. Therefore, regarding all the ventures spearheaded by NNPC, can you point out any single project that has been successfully finished?

"The refurbishment of the refinery has become a major scandal. We had advised against proceeding with this approach, but they ignored our warnings and pushed forward regardless. Currently, when discussing these so-called 'politically-driven' completions, can anyone genuinely claim that these refineries meet economic and technical standards? Absolutely not. Out of the seven LNG train facilities, only two are operational; Trains One through Six remain non-functional. Additionally, Train Seven isn’t fully up and running either. Numerous natural gas pipeline initiatives like OB3 to Cross River/Niger are now halted indefinitely. Even the AKK project faces similar stagnation. Can you identify even one successful initiative amidst all the hype? Given such circumstances, I sometimes marvel at how much rhetoric surrounds these endeavors. Some among us feel compelled to speak out despite potential risks to personal safety due to an ongoing pattern since 1966 where political leaders overlook incompetent state administrators who continue to undermine national progress," he stated firmly.

The energy specialist lamented that government officials undermined vital organizations in Nigeria, such as Nigerian Telecommunications Limited along with key sectors like power, education, healthcare, and more.

We scrutinized Nigeria's education system. We examined the healthcare system in Nigeria. We analyzed the country’s public works infrastructure. We assessed NEPA. We evaluated NITEL. We inspected NPA. We looked into the railways. We critically reviewed every sector.

NNPC was the sole entity remaining that continued to generate revenue for this nation. We permitted a group of individuals to undermine its operations. Yet, we will celebrate them. Our political figures may even endorse national accolades for their actions.

The previous leadership of NNPC comprised individuals who were once students under professors of geophysics, geology, and engineering over the past 15 years. How do these former educators fare against the accomplishments of the young leaders from that era? Compare the immense personal fortunes amassed by these younger figures and their associates. Therefore, I believe it’s time to critically assess our public officials instead of blindly endorsing their claims with misleading rhetoric about completing projects here and there. These initiatives have not been successful.

"They never return anything. Is Ajakuta yielding any output? Additionally, you've got an entire ministry dedicated to steel. They would claim that the steel sector is thriving. But how exactly is the steel industry flourishing? These are some of the concerns," he stated.

The stakeholder sought to know Kyari’s project that added value to the nation’s economy.m, accusing him of diverting funds from the upstream to the midstream and downstream.

"Which initiative did Kyari undertake to contribute positively to the nation's economy? Instead of utilizing funds from upstream revenues effectively, he redirected them towards wasteful spending in the midstream and downstream sectors. This is just my perspective; I am not influenced by bias. It doesn't matter to me who someone is as an individual. If they act virtuously, then they are like family to me—regardless of their background or beliefs. Our time here on Earth is fleeting, so we should all strive for the greater benefit of mankind based on shared human values," he emphasized.

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