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Wednesday, 30 April 2025 04:34

NNPCL faces criticism as Warri Refinery fails to take off after $897m in repairs bill

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The Nigerian National Petroleum Company Limited is under scrutiny after the Warri Refining and Petrochemical Company has been shut down since January 25, 2025, due to safety issues, just one month after being declared operational.

Documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority reveal that despite a $897.6m maintenance investment, the refinery failed to produce petrol before shutting down. Meanwhile, the Port Harcourt Refining Company, which resumed operations in November 2024, is operating below 40% capacity instead of the claimed 70%.

The 125,000 barrels-per-day Warri refinery was commissioned in 1978 and restarted on December 30, 2024, after decades of being moribund. Former NNPC Group Chief Executive Mele Kyari had proudly stated, "This plant is running... We have proved that it is possible to restart a plant that you deliberately shut down."

Industry experts have expressed dismay at the situation. Chinedu Ukadike of the Independent Petroleum Marketers Association called it "very disheartening that a refinery that gulped a whole lot of money would be shut down in less than two months of operations," urging presidential intervention.

Energy expert Dan Kunle described the rehabilitation efforts as "a scandal," stating the former NNPC team "created wealth for themselves but failed to create value for the country."

When contacted, NNPCL spokesperson declined to comment on the current issues.​​​​​​​​​​​​​​​​