Nigeria’s $3bn Refinery Fix Collapses as Plants Remain Idle

Nigeria’s multi-billion-dollar refinery rehabilitation projects in Port Harcourt, Warri and Kaduna have stalled, leaving the once-bustling facilities idle and workers redundant despite over $3bn already spent.

Investigations show that the Economic and Financial Crimes Commission is probing allegations of mismanagement after the Nigerian National Petroleum Company Limited (NNPCL) failed to revive the plants. Workers now report to duty without meaningful tasks, while production lines remain dormant.

The refineries, once vital to the country’s energy supply, were meant to return to full operation following extensive rehabilitation contracts. Instead, they stand as symbols of Nigeria’s costly reliance on fuel imports despite being Africa’s largest crude oil producer.

In Port Harcourt, a $1.5bn upgrade was announced with promises of restoring the refinery’s 210,000 barrels-per-day capacity. In late 2024, NNPCL claimed partial resumption with projections of millions of litres of fuel products daily. But by mid-2025, the plant was shut down for “maintenance” and has remained inactive since, with marketers accusing the government of deception. Only small quantities of diesel are being dispatched from old stock, while independent dealers complain of high costs and lack of access.

The Warri refinery, rehabilitated at a cost of nearly $900m, briefly restarted operations in December 2024 but has since fallen silent. Tanker parks are empty, the plant’s flare extinguished, and staff reduced to routine office visits. Sources confirmed that no refining is taking place, even as officials insist on ongoing maintenance while awaiting fresh policy direction.

At the Kaduna refinery, where \$740m was committed in 2023 for a quick-fix programme, the situation is much the same. Once a hive of industrial activity, the complex is now quiet, with locals describing it as abandoned. Promises of 60 per cent production capacity by December 2024 never materialised, and residents say the prolonged inactivity has crippled businesses around the facility. Former engineers warn that corrosion and staff losses could make restarting even more difficult.

The collapse of the three plants has devastated surrounding communities, once dependent on the refineries for jobs and commerce. “This is like waiting for the coming of Christ — promised but never happening,” one resident in Kapam, near the Kaduna refinery, told reporters.

NNPCL maintains that it is committed to finding a sustainable solution. Spokesperson Andy Odeh said technical and commercial reviews are ongoing to restore the plants to full operation. But with billions already spent and no fuel flowing, confidence in the government’s ability to deliver has worn thin.