Nigeria’s Refineries Rot Despite $3bn Rehabilitation Funds
By Safiyat Muhammed | The Bureau News
Nigeria’s dream of reviving its moribund refineries in Port Harcourt, Warri, and Kaduna has once again hit the rocks, despite the staggering $3 billion allocated for rehabilitation. Investigations by The Bureau News reveal that the state-owned refineries remain largely dormant, with workers idling away while billions of naira continue to sink into unproductive projects.
A Trail of Waste and Broken Promises
Despite being Africa’s top crude oil producer, Nigeria still imports nearly all its refined petroleum products, costing billions annually and exposing the country to global price shocks.
The Nigerian National Petroleum Company Limited (NNPCL) has repeatedly launched multi-billion-dollar rehabilitation programs since the early 2000s, but none has restored the refineries to meaningful production capacity.
The Economic and Financial Crimes Commission (EFCC) is currently probing alleged mismanagement of the $3bn allocated to the Port Harcourt, Warri, and Kaduna plants. In May 2025, the commission grilled sacked NNPCL executives over suspicions of fund diversion.
Port Harcourt Refinery: From Hope to Silence
The Port Harcourt Refining Company—with a combined capacity of 210,000 barrels per day (bpd)—was touted as the centerpiece of the rehabilitation program. In November 2024, NNPCL boss Mele Kyari announced partial resumption at 70% capacity, promising daily production of diesel, petrol, and kerosene.
But findings by The Bureau News show the refinery barely operated before shutting down again in May 2025 for “routine maintenance.” Since then, the facility has remained idle, with only diesel (AGO) from old stock trickling out.
Marketers told The Bureau News the refinery is “not producing anything,” accusing government officials of deceiving Nigerians with staged inaugurations.
“The refinery is not working. They only load diesel from old stock. Let the government stop deceiving us,” one independent marketer lamented.
Warri Refinery: A Brief Revival, Swift Collapse
Commissioned in 1978 with a 125,000 bpd capacity, the Warri Refining and Petrochemical Company was shut in 2015 after years of vandalism and technical failures. Nearly $900m was earmarked for its rehabilitation in 2021.
Although NNPCL declared partial resumption in December 2024, the refinery has since fallen silent. The Bureau News visited recently and found empty tanker parks, dormant plants, and idle staff.
One insider noted:
“People are just collecting salaries, but the refinery is not working.”
Kaduna Refinery: Endless Rehabilitation, No Results
The Kaduna Refining and Petrochemical Company, built to process 110,000 bpd, is now a ghost town. Despite a $740m “quick-fix” contract signed in 2023 with promises of 60% capacity by December 2024, the refinery remains dead.
Locals told The Bureau News that economic activities once supported by the refinery have collapsed. Shops are empty, transport businesses gone, and communities impoverished.
“This is like waiting for the coming of Jesus Christ. Everybody is waiting, but it is not coming,” said John, a resident of Kapam near the refinery.
A former engineer warned that prolonged dormancy has caused severe corrosion and staff depletion. From over 1,200 workers, fewer than 100 remain.
Billions Spent, No Fuel
The story of Nigeria’s refineries is a cycle of broken promises, inflated contracts, and wasted billions. The EFCC investigation is ongoing, but public confidence is low.
NNPCL spokesperson Andy Odeh insists that detailed reviews are underway to find a lasting solution. But Nigerians, already burdened by high fuel prices and economic hardship, remain skeptical.
For now, the refineries in Port Harcourt, Warri, and Kaduna stand as monuments of corruption and failed leadership.
