Nigerian Refineries still Idle despite $3bn Rehabilitation Funds – Reports

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Investigations have revealed that Nigeria’s major refineries in Port Harcourt, Kaduna, and Warri remain largely non-functional, despite over $3bn spent on rehabilitation contracts. Findings show the funds — now under probe by the Economic and Financial Crimes Commission (EFCC) — have failed to deliver results.

Correspondents who visited the facilities in Rivers, Kaduna, and Delta states observed decaying infrastructure, deserted production units, and idle workers who reportedly resume and close at will because “they have nothing to do.”

This setback adds to Nigeria’s decades-long struggles with its state-owned refineries, which have drained billions in revenue and forced the country, Africa’s top crude oil producer, to depend almost entirely on imported petroleum products.

Since the early 2000s, the Nigerian National Petroleum Company Limited (NNPCL) has announced several turnaround maintenance projects. Each round was accompanied by promises of revival — but the cycle of missed deadlines and unfulfilled assurances has persisted.

The current EFCC investigation follows allegations of mismanagement of the $3bn allocated for the latest rehabilitation. In May 2025, the agency reportedly interrogated the recently sacked managing directors and senior NNPCL officials over the handling of the funds.

Port Harcourt Refinery: Big Promises, Bigger Disappointments

The Port Harcourt Refining Company (PHRC) in Alesa, Eleme, boasts a combined 210,000 barrels per day (bpd) capacity from two plants established in 1965 and 1989. Once a major producer of petrol, kerosene, diesel, and petrochemicals, it shut down in 2019 due to vandalism and outdated equipment.

A $1.5bn rehabilitation contract was signed, structured in three phases, and scheduled for completion in 2025. In November 2024, then-NNPCL Group CEO, Mele Kyari, announced that operations had resumed at 70 per cent capacity, projecting output of “1.5 million litres of diesel, 2.1 million litres of low-pour fuel oil daily, 1.4 million litres of petrol, and 900,000 litres of kerosene.”

However, the refinery only ran briefly before it was shut again. By May 2025, former NNPCL spokesperson Olufemi Soneye disclosed a “30-day shutdown for routine maintenance”.

Stakeholders expressed outrage. On June 5, the Host Community Bulk Petroleum Retailers Association declared, “We are shocked over the prolonged shutdown. The federal government must stick to the 30-day timeline it promised; otherwise, it will be taking Nigerians for granted.

Despite these assurances, reporters who visited twice saw no activity, with workers idling or sleeping at the site. NNPCL dismissed the reports, but by July 2025, the company admitted it was “reviewing the rehabilitation plans”. A month later, in August, it backtracked entirely, acknowledging “errors in the $1.5bn work” and confirming that the refinery was still incomplete.

Recent visits confirmed that the Port Harcourt refinery remains dormant, with no production ongoing. Workers were only seen handling administrative duties while the adjoining PHRC depot stood still.

Warri Refinery: Empty Promises, Empty Tanks

The Warri Refining and Petrochemical Company (WRPC), established in 1978 with a 125,000 bpd capacity, has been inactive since 2015 following pipeline damage and technical breakdowns. The Federal Government approved $897.6m in 2021 for its rehabilitation, as part of a $1.4bn package shared with Kaduna.

On December 30, 2024, Reuters reported a restart at Warri after 10 years. Kyari announced at the time that it would operate at 60 per cent capacity.

But a recent Sunday PUNCH visit revealed no production at the facility. The once-busy tanker park was deserted, the flare stacks were out, and the petrochemical plant was inactive. Like in Port Harcourt, only a few staff members were sighted moving in and out for paperwork.

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