posted 30th April 2025
Nigeria's Refinery Reactivation Fiasco: A Costly Charade, Says Energy Expert
LAGOS, 30 April 2025 – The Nigerian National Petroleum Company Limited (NNPCL) is under intense scrutiny following revelations that the highly publicised reactivation of the Warri, Port Harcourt, and Kaduna refineries was a sham. Energy expert Kelvin Emmanuel has branded the televised commissioning ceremonies as a "charade," asserting that the refineries were never poised to resume operations. The failure has sparked outrage, with staggering financial losses and operational setbacks deepening Nigeria’s energy crisis.
The NNPCL’s efforts to revive the state-owned refineries have been marred by repeated delays and unmet deadlines. The Port Harcourt Refining Company, which resumed operations in November 2024, was hailed as a milestone by former NNPCL boss Mele Kyari. However, an April 2025 report from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed that the refinery, despite consuming millions of dollars in maintenance costs, failed to produce Premium Motor Spirit (petrol) and was shut down just a month after its launch. Operating at less than 40% capacity, it fell far short of expectations.
Similarly, the Warri Refining and Petrochemical Company, allocated more than $800 million dollars for rehabilitation, ceased operations in January 2025, weeks after being declared functional. The Kaduna Refining and Petrochemical Company, reportedly 81.1% complete in its upgrade as of April 2025, has yet to deliver tangible results. Industry insiders have questioned the NNPCL’s transparency and efficiency, with some alleging mismanagement on an unprecedented scale.
The financial toll of these failures is staggering. The Warri refinery alone saw £689 million in rehabilitation funds vanish with no petrol production to show for it. Reports also indicate that an additional ₦825 billion and US$2.5 billion remain unaccounted for in the broader refinery rehabilitation programme. The Socio-Economic Rights and Accountability Project (SERAP) has called for an investigation by the Economic and Financial Crimes Commission (EFCC), demanding accountability for what it describes as a monumental waste of public resources.
These costs come at a time when Nigeria grapples with soaring fuel prices, with petrol retailing between ₦965 and ₦1,100 per litre nationwide. The failure to operationalise domestic refineries has left the country reliant on costly fuel imports, straining foreign exchange reserves and exacerbating economic hardship for millions.
Kelvin Emmanuel, a prominent energy analyst, has been vocal in his criticism. Appearing on television, he declared the refineries’ revival a non-starter, stating, “The possibility of these refineries producing petroleum products is almost zero.” His remarks, echoed on social media platforms like X, have ignited a firestorm of debate. While some Nigerians accused Emmanuel of undermining national interests, others rallied behind his call for accountability, urging him to substantiate his claims with on-site investigations.
Posts on X reflect the public’s frustration. One user, @chude__, lamented, “They knew the refineries would never work, yet they threw over $800M into the project.” Another, @EntrepreneNg, highlighted SERAP’s demand for an EFCC probe, underscoring the scale of alleged financial irregularities.
In a dramatic move, the NNPCL sacked the managing directors of the three refineries on 30 April 2025. Ibrahim Onoja (Port Harcourt), Dr Mustafa Sugungun (Kaduna), and Efifia Chu (Warri) were removed, alongside management staff nearing retirement. The shake-up, reported by Punch and Economic Confidential, is seen as an attempt to deflect criticism, but the NNPCL has yet to address the core issues of operational failure and financial mismanagement.
Oil and gas expert Dan Kunle, speaking on Diaspora Dialogues, described the rehabilitation efforts as a “scandal.” He argued that the removal of Mele Kyari and the appointment of Bayo Ojulari as NNPCL’s Group Chief Executive Officer were long overdue. Kunle’s sentiments echo a broader disillusionment with the NNPCL’s handling of Nigeria’s refining capacity, which has lagged behind the privately-owned Dangote Refinery, despite the latter’s own challenges with crude supply.
The collapse of the refinery reactivation programme has far-reaching implications for Nigeria’s energy security. The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged the NNPCL to expedite rehabilitation work, warning that continued delays could undermine job creation and economic stability. With the Kaduna refinery’s upgrade at 81.1% completion, there is cautious optimism, but the shadow of past failures looms large.
As Nigerians demand answers, the NNPCL faces mounting pressure to deliver transparency and results. For now, the dream of self-sufficient refining remains elusive, leaving the nation to count the cost of a promise unfulfilled.
