$1.5bn Later, Port Harcourt Refinery Still Idle as Maintenance Deadline Passes

The shutdown of the Port Harcourt Refinery for maintenance has entered its second month, with operations still on hold despite earlier assurances of a one-month turnaround. The Nigerian National Petroleum Company Limited (NNPCL) had announced the shutdown on May 24, following confirmation from its then-Chief Corporate Communications Officer, Olufemi Soneye. However, as of June 25, the facility remains non-operational, with no official update from NNPCL.

Local petroleum marketers confirmed that repair work is ongoing, but there has been no clear communication from NNPCL regarding the delays. Attempts to reach the state-run oil firm through listed contact channels were unsuccessful. Meanwhile, the refinery’s \$1.5 billion rehabilitation project is under investigation by the Economic and Financial Crimes Commission (EFCC), which is also probing similar projects at the Warri and Kaduna refineries.

On Monday, the EFCC reportedly arrested former NNPC Chief Financial Officer, Umar Isa, over alleged involvement in a \$7.2 billion fraud related to refinery rehabilitation funds. Other key officials from the Warri and Port Harcourt refineries are also under investigation for alleged corruption and mismanagement, including former managing directors Tunde Bakare, Ahmed Adamu Dikko, and Ibrahim Monday Onoja.

The Port Harcourt refinery was previously declared operational by former NNPC Group Chief Executive Officer Mele Kyari in November 2024. At the time, the company claimed the revamped 60,000-barrels-per-day facility was functioning at 70% capacity, with diesel and low-pour fuel oil expected as the primary outputs. Daily production of petrol, kerosene, and naphtha was also anticipated.

However, just six months later, the refinery was shut down again for what was expected to be routine maintenance. That timeframe has now lapsed, and operations have not resumed. Similarly, the Warri refinery, also declared operational in December 2024, has remained dormant since its closure a month later. In its April 2025 report, NNPCL stated that the status of all three major refineries—Port Harcourt, Warri, and Kaduna—remains under review.

Industry stakeholders have raised doubts about the value of the refinery operations without the inclusion of key components such as the Premium Motor Spirit (PMS) blending unit. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) argued that any maintenance effort would be incomplete without it, describing the crude cracking process as ineffective otherwise.

Following the shutdown of Port Harcourt and Warri refineries—despite a combined investment of approximately \$2.4 billion—oil marketers and members of the Organised Private Sector have renewed calls for the immediate privatisation of Nigeria’s government-run refineries.

Meanwhile, a separate crisis erupted on Tuesday as fuel marketers protested steep diesel price hikes at the Port Harcourt refinery. Members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) decried price increases from N930 to N980 and then N1,130 per litre within a single week, despite purchasing fuel at the earlier rate. The marketers demanded that NNPCL either honour the original price or refund their payments. Leaders of IPMAN and refinery officials have since appealed for calm, assuring that the issue has been escalated to NNPC headquarters in Abuja.

The Port Harcourt refinery, located in the oil-rich Niger Delta region, has operated since 1965 but has faced years of neglect and failed revamp attempts. Despite multiple commissioning announcements and significant financial investments, the facility has struggled to sustain production, raising serious questions about Nigeria’s refinery management and petroleum supply strategy.