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NNPCL faces serious questions as $897m Warri refinery fails to deliver

Stephen Oluwafemi

April 29, 2025
in Economy, News, Politics & Policies
0
NNPCL faces serious questions as $897m Warri refinery fails to deliver
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Industry professionals have questioned the operational integrity of the Nigerian National Petroleum Company Limited (NNPCL) regarding the management of Nigerian refineries. This follows the disclosure that Warri Refining and Petrochemical Company has been shut since January 25, 2025, over safety issues.

The refinery was reportedly shut down barely a month after former NNPC Group Chief Executive Officer, Mele Kyari declared it operational. Experts say the refinery, despite $897.6 million spent on maintenance, has been producing petrol at under 40% capacity.

Further reports linked the shutdown to major faults in the refinery’s distillation unit, raising safety concerns and halting the refinery’s operations.  Also, a document from the Nigerian Midstream and Downstream Petroleum Regulatory Authority shows the refinery operates at only 37.87 percent capacity.

The document shows that the refinery produced an average of 82.55 million liters of refined petroleum in a month. This data between November 2024 and April 2025, is reportedly less than its estimated optimal production of 218 million litres per month.

The document also contradicts claims that the oil plant operated at 70 percent capacity or planned to boost output in coming months. A detailed breakdown showed the refinery produced 9.51 million liters in November, far below its 38.16 million liter capacity.

According to the report, the production amounts to barely 24.92 percent utilization, with a shortfall of 28.65 million liters. Although the refinery saw an increase in production in December, the output still fell short of its expected monthly production.

According to Punch, NNCL spokesperson, Femi Soneye, declined to comment on the issue regarding the shutdown of the refinery. However, Soneye had admitted that the facility was undergoing a planned routine maintenance program aimed at ensuring optimal operations.

The refinery, commissioned in 1978 is operated by the NNPC and was established to cater to southern and southwestern regions.

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