Nigeria’s $3bn Refinery Revamp Stalls as Facilities Remain Idle

Despite over $3bn spent on rehabilitation contracts, Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna remain largely dormant. Investigations by the Economic and Financial Crimes Commission (EFCC) are ongoing over alleged mismanagement of the funds.

For years, Nigeria—Africa’s largest crude producer—has imported almost all its refined fuel, fueling corruption allegations and economic strain. Several attempts to revive the refineries since the early 2000s have failed, leaving the facilities idle while workers reportedly receive salaries without meaningful activity.

Port Harcourt Refinery: Delays and Dormancy

The Port Harcourt complex, with a combined capacity of 210,000 barrels per day, was shut in 2019. A $1.5bn rehabilitation contract was meant to restore operations by 2025. Brief test runs were announced in late 2024, but operations quickly stalled. By mid-2025, only small quantities of diesel were lifted from old stock, while petrol and kerosene production ceased. Locals and marketers accuse the government of misleading the public with repeated unfulfilled promises.

Warri Refinery: Restart and Collapse

The Warri Refining and Petrochemical Company, with a capacity of 125,000 bpd, was shut down in 2015. Nearly $900m was allocated for its repair, and production briefly resumed in December 2024. However, activity quickly stopped, leaving the facility idle once again. Sources claim staff now only carry out routine administrative work while awaiting new directives.

Kaduna Refinery: Endless Repairs

The Kaduna refinery, once a major employer in the region, has been inactive for years despite a $740m “quick-fix” contract signed in 2023. Promises of 60% output by December 2024 never materialized. Locals say the inactivity has crippled businesses that depended on the refinery. Experts warn that prolonged dormancy has worsened corrosion, reduced staff strength, and made restart increasingly difficult.

Outlook

The Nigerian National Petroleum Company Limited maintains that it is committed to restoring the refineries and has begun technical and commercial reviews. However, with billions already spent and little to show, many Nigerians remain skeptical that the facilities will ever return to full operation.