Warri Refinery Shutdown Sparks Public Outcry Over $897m Rehabilitation Failure

The Nigerian National Petroleum Company Limited (NNPCL) is facing mounting criticism over the prolonged shutdown of the Warri Refining and Petrochemical Company (WRPC), which ceased operations just weeks after being declared functional, despite an $897.6 million revamp.

A report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reveals that the Warri refinery, which resumed operations on December 30, 2024, has been shut since January 25, 2025, due to safety concerns related to a critical fault in the Crude Distillation Unit (CDU) Main Heater.

This comes as the Port Harcourt Refining Company (PHRC), which resumed partial operations in November 2024 following a $1.5 billion rehabilitation, has failed to exceed 42 per cent of its installed capacity. Industry experts and stakeholders have decried the development, citing inefficiencies, lack of transparency, and poor management within NNPCL’s operations.

The WRPC, with a nameplate capacity of 125,000 barrels per day, was hailed by former NNPCL Group CEO Mele Kyari as a success story during its recommissioning. Kyari had insisted that the project marked a turning point for the nation’s refining capacity, stating, “This plant is running… we have proved that it is possible to restart a plant that was deliberately shut down.”

However, the NMDPRA document paints a different picture, indicating the refinery has remained completely inactive since January. Prior to the shutdown, the facility had only produced marginal volumes—1.96 million litres of Automotive Gas Oil (AGO) and 2.84 million litres of Household Kerosene (HKK) in December 2024, and 10 million litres of AGO and 12 million litres of HKK in January 2025.

Attempts to obtain comments from NNPCL spokesperson Femi Soneye were unsuccessful. However, in a February statement, Soneye attributed the shutdown to planned maintenance works aimed at improving operations, denying media reports of an explosion. “Operations at WRPC Area 1 were intentionally curtailed to carry out necessary intervention works on select equipment,” the statement read.

Meanwhile, the Port Harcourt refinery, which was commissioned amid much fanfare, has underperformed. The facility, expected to deliver 218 million litres of refined products monthly, has averaged only 82.55 million litres between November 2024 and April 2025—less than 40 per cent of its optimal output.

Despite NNPCL’s claims that the refinery was operating at 70 per cent capacity with plans to reach 90 per cent, data from the NMDPRA shows otherwise. The refinery produced just 9.51 million litres in November—representing 24.9 per cent utilisation—and peaked at 120.91 million litres in January (42.2 per cent), before output declined again in subsequent months.

Daily trucking data further highlights inconsistencies. While 538,600 litres of Premium Motor Spirit (PMS) were dispatched daily in December, production dropped to zero in March and April. In contrast, diesel production rose significantly, reaching an average of 968,460 litres per day in early April.

Stakeholders are alarmed by these trends. Chief Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), described the situation as “disheartening” and called for a state of emergency in the refining sector. “A refinery that gulped so much money should not shut down within two months. People should be held accountable,” he said.

Ukadike criticised the lack of competition in the downstream sector, warning that Nigeria’s dependency on the Dangote refinery as the sole domestic producer could distort the market. “We now have a mono-source. Deregulation only works when there is competition,” he noted.

Similarly, energy analyst Bala Zaka said the failure of the refineries to reduce fuel prices for consumers underscores the inefficacy of the entire rehabilitation effort. “The workability of any part of the economy must be seen practically in reduced costs and improved access. Nigerians are not seeing these benefits,” he said.

The federal government, led by President Bola Tinubu, had lauded the reopening of both refineries as key milestones toward energy sufficiency under the Renewed Hope Agenda. Presidential spokespersons claimed the moves would reduce dependence on imports, bolster local refining, and boost exports.

Yet, the reality suggests otherwise. Despite 180 days of claimed operation, output remains erratic, with utilisation rates far below expectations and PMS production grinding to a halt in recent weeks.