Full Privatization of Port Harcourt, Warri, Kaduna Refineries in the Works – Presidency

The Nigerian government has announced the “mechanical completion” of the Port Harcourt refinery, marking a significant milestone in the country’s efforts to revive its ailing state-owned refineries. This announcement, made by the presidency, is part of broader plans for the complete privatization of the country’s four major refineries. Special Adviser to President Bola Tinubu, Sunday Dare, shared the update in a post on X, detailing the ongoing reforms in the oil sector.

The presidency’s tracker highlights the privatization of the Port Harcourt, Warri, and Kaduna refineries as part of the government’s strategy to boost local oil refining capacity. The goal is to reduce the country’s reliance on fuel imports and end long-standing fuel shortages. The tracker also pointed out that local refining, supported by Dangote and modular refineries, is expected to increase, gradually meeting full local refining capacity.

Nigeria’s refineries—two located in Port Harcourt, one in Warri, and another in Kaduna—have a combined capacity of 445,000 barrels per day. However, these refineries have long struggled to operate at full capacity, despite extensive investment in rehabilitation. A report from the House of Representatives ad-hoc committee revealed that over N11 trillion was spent on attempts to repair the refineries between 2010 and 2023, with little success.

This persistent underperformance has forced Nigeria to rely heavily on imported petroleum products, draining the country’s foreign reserves. Despite numerous promises from past administrations, efforts to revamp the refineries have repeatedly failed.

In August 2023, President Tinubu’s government pledged that the Port Harcourt refinery would be operational by December 2023, with the Warri and Kaduna refineries following by the first and last quarters of 2024, respectively. However, those timelines have not been met, and the nation continues to grapple with the challenge of ensuring the operational efficiency of its refineries.