Industry operators and experts raise concerns over the transparency and efficiency of NNPC Limited, particularly after the shutdown of the Warri refinery and low production at Port Harcourt
The operational integrity of the Nigerian National Petroleum Company Limited (NNPC) has come under scrutiny from industry operators and experts, who are questioning the company’s transparency, efficiency, and overall management of Nigeria’s refineries.
Also read: NNPCL proudly confirms stake in Dangote Refinery, dismisses sabotage allegations
This skepticism follows the revelation that the Warri Refining and Petrochemical Company (WRPC) has been non-operational since January 25, 2025, due to critical safety issues identified in its Crude Distillation Unit Main Heater.
A recent April 2025 report on the Midstream and Downstream sector, obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), revealed that the Warri refinery, despite consuming a substantial $897.6 million in maintenance costs, failed to produce Premium Motor Spirit (petrol) and was shut down barely a month after its purported recommissioning by the former NNPC Group Chief Executive Officer, Mele Kyari.
Industry operators and experts have described this situation as deeply disheartening. Further findings indicate that the Port Harcourt Refining Company (PHRC), which resumed operations in November 2024, has been operating significantly below its installed capacity, at under 40 per cent.
Metronews previously reported the NNPC’s announcement on December 30, 2024, regarding the revival of the 125,000 barrels per day capacity Warri refinery, which had been largely moribund for decades.
President Bola Tinubu had also commended the NNPCL for this achievement, noting its initial operation at 60 per cent capacity with a focus on producing and storing critical products like kerosene, diesel, and naphtha.
Former GCEO Mele Kyari had emphasized the revitalisation’s reality and visibility, countering public skepticism about such projects in Nigeria.
However, the exclusive NMDPRA document detailing refinery production data starkly contradicts this narrative, stating the Warri Refining and Petrochemical Company, with its 125,000 bpd capacity, has been completely shut down since January 25, 2025, due to safety concerns related to the CDU Main Heater.
It is very, very disheartening that a refinery that gulped a whole lot of money would be shut down in less than two months of operations. That is a total waste, and people should be held responsible,” – Chief Chinedu Ukadike, IPMAN National Publicity Secretary.
The report also highlighted the underperformance of the Port Harcourt refinery, which, six months after its highly anticipated recommissioning, has been operating at only 37.87 per cent of its 60,000 bpd installed capacity.
The refinery’s monthly production data showed an average output of 82.55 million litres of refined products between November 2024 and April 2025, significantly less than its estimated optimal monthly production of 218 million litres.
This development also contradicts claims made by NNPC spokesperson Femi Soneye, who had stated in February that the Port Harcourt refinery was operating at 70 per cent capacity with plans for further increases.
The refinery’s output includes blending components for petrol, as well as diesel and kerosene.
The $1.5 billion rehabilitation project for the Port Harcourt refinery, funded by international financial institutions, aimed to restore the facility to full operational status after years of dormancy and multiple postponements.
Interestingly, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) recently commended the NNPCL for the purported continuous operation of the revamped Port Harcourt Refinery for 180 days.
However, the new NMDPRA data reveals the facility never exceeded 42.23 per cent of its operational capacity during that six-month period, producing more diesel than petrol blending components and recording zero PMS evacuation in March and April.
When contacted for comment, the NNPCL spokesperson declined to respond. However, in a February statement, Soneye had attributed the Warri refinery’s shutdown to a planned routine maintenance program, assuring a swift return to operations.
The company’s silence and the stark contrast between official pronouncements and the NMDPRA data have fueled skepticism among industry stakeholders.
Chief Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), described the situation as “disheartening” and called for urgent reforms and accountability within the refinery sector, urging President Tinubu to declare a state of emergency on the refineries and review their staffing.
Petroleum expert Bala Zaka criticized the ongoing operations, stating that Nigerians have yet to see tangible benefits in reduced fuel prices, questioning the claimed functionality of the refineries.
However, he opposed privatization, advocating for government action to restore the refineries’ full functionality.
Oil and gas expert Dan Kunle labeled the rehabilitation of the Port Harcourt and Warri refineries a “scandal,” arguing that the former NNPC leadership, including Mele Kyari, failed to deliver tangible results and that the reported rehabilitations were mere propaganda.
He welcomed the appointment of Bayo Ojulari as the new GCEO, expressing hope for improved performance. Kunle also lamented the historical mismanagement of critical institutions in Nigeria, including the oil sector.
