The country’s four petrochemical refineries, which have become money-guzzling behemoths, have continued to gulp millions of taxpayers’ dollars, emptied into them by administration after administration, without commensurate utility. A picture of the saprophytic nature of the refineries can be gleaned from the $3.14 billion invested in revamping three of the four refineries, which remain comatose. ANN GODWIN and CHIDO OKAFOR, who visited two of these four cost-centres, report that apart from cutting the images of ghost towns, both are at their wasteful best. Expectedly, the implications of non-functional refineries extend beyond fuel availability as refining capacity is central to industrial development, and provides critical inputs for manufacturing, construction and other key sectors.
At first glance, the refineries appear less like functioning industrial facilities and more like relics slowly being reclaimed.

As The Guardian finds its way into the facilities, the impact of the $1.5 billion spent on the Port Harcourt Refining Company (PHRC) and approximately $897 million spent on revamping the Warri Refining and Petrochemical Company (WRPC) is hard to find.
Instead, large sections of these complexes are overrun by shrubs, with the ambience dishevelled and unkempt. Within these facilities, key installations sit idle, and the once-booming entities now stay silent at midday when they should be roaring. The endless flare stack, once a constant, flickering signal of refining activity, is no more.

Human presence is sparse. In place of workers, birds claimed installations, perching undisturbed on technical units and leaving droppings that suggest a long absence of routine cleaning or maintenance.

On Monday, January 26, 2026, at about 1:30 p.m., the entire environment felt subdued, almost abandoned. The access road leading to the facility has deteriorated seriously and is riddled with deep ditches, while heaps of refuse line the perimeter fence, showing neglect.

Nowhere was this stillness more pronounced than at the loading bay known as Area Five, which was hitherto like the heartbeat of the facility when the refinery was operational. No petroleum tankers were queuing up to load products, while only two police officers stood guard at the entrance. Expectedly, their presence raised questions about what exactly remained to be secured in the absence of visible production or distribution.

While the country’s economy feels the pangs of a poorly administered oil sector, the Nigerian National Petroleum Company Limited ( NNPCL ) has simply proven former President Olusegun Obasanjo right, who recently said the refinery won’t work.

Also proven right is the Founder of Stanbic IBTC and Anap Foundation, Atedo Peterside, who, in 2021, kicked against plans to spend $1.5 billion on repairing the PHRC.

Peterside had insisted that the project would only plunge Nigeria into a financial mess. He was right, as the refineries now have over N4 trillion in debt.

At the once-bustling administrative areas of the PHRC and the staff car parks, which once played host to sophisticated automobiles, only three Coaster buses and two Hilux vans were visible along the Corporate Affairs axis. They were complemented by a couple of private cars, markedly fewer than in early 2025, when The Guardian also visited.

A clearer picture of the decay in the facility presented itself at the technical unit, which is adorned with broken glass doors and generally reeks of neglect.

Inside the offices, activities were minimal as some workers idled at their desks, while others gathered in tiny clusters for casual conversation. A number of them had already begun leaving the premises before 1:40 p.m., as though the workday itself had little meaning.

While what remains of routine activities appears to be sustained largely by casual workers, cleaners, water suppliers, security personnel, drivers, and community-based contractors, core refinery staff members have remained on the payroll for years despite prolonged shutdowns and limited operations, raising pressing concerns about fiscal sustainability and the absence of performance-driven reforms.

This lends credence to the claim by the Group Managing Director of NNPCL, Mr Bashir Bayo Ojulari, who told industry practitioners at the Nigerian International Energy Summit in Abuja, that human capital to sustainably operate the assets was the problem.

The implication of this is that the workers were only earning salaries and had limited capital to run the assets profitably.

At the Warri Refining and Petrochemicals Company (WRPC), a similar scenario unfolds. Just three weeks after its high-profile reopening in December last year, the facility was again shut down on January 25, 2026, due to safety concerns linked to its Crude Distillation Unit Main Heater. For workers, many of whom had already endured long periods of idleness since 2022, the shutdown was yet another blow.
When The Guardian visited the WRPC complex between January 27 and 28, a mood of quiet despondency hung over the vast facility. Car parks that once brimmed with vehicles were nearly empty, and the absence of machinery noise underscored the operational standstill at a plant, which just swallowed $897.6 million of taxpayers’ money.

An endless drainpipe
DESPITE abundant evidence to the contrary, the Federal Government has repeatedly assured Nigerians that the refineries would be resuscitated to significantly reduce the ripple effects of rising petrol prices on the masses. Sadly, these promises have not been kept.

As a matter of fact, apart from a series of Turnaround Maintenance (TAM) that the refineries have undergone over the years, the Federal Executive Council in March 2021, under the watch of the late President Muhammadu Buhari, approved another round of spending on the facilities.

While the PHRC received $1.5 billion for its rejuvenation, the WPRC received $897.6 million, and the Kaduna Refinery was to be repaired for $740.67 million, totalling about $3.14 billion.

Hope rose when the government signed deals with Tecnimont SPA, an Italian company and Daewoo Engineering and Construction Company to put life back into some of these refineries, but despite the big deals and big names involved, Nigeria was yet again bequeathed gnashing of teeth. Between the launch in 2021 and March 2026, the refineries were once again victims of repeated delays, broken promises, and stop-start operations.

When President Bola Tinubu President Bola Tinubu announced on May 29, 2023, the removal of the petrol subsidy, the policy shift immediately triggered a sharp increase in petrol pump prices. Petrol rose from about N189 to N195 per litre to between N500 and N600 per litre. By July 2023, the price had climbed further to N617 per litre. As of today, petrol is selling for as high as N1,400 in many parts of the country.
Rather than being mitigated, the challenges associated with subsidy removal have been exacerbated, deepening the cost-of-living crisis and placing additional pressure on households, businesses, and the broader economy.

The absence of answers to perennial woes afflicting the country’s refineries has led to some stakeholders alleging deliberate obstruction and manipulation of the system by interest groups that are bent on actualising the long-standing public perceptions that Nigeria’s downstream sector remains more comfortable with fuel importation – a system that benefits a narrow set of interests at high cost to the broader population.

Given that the President also serves as the minister of petroleum resources, critics argue that decisions affecting refinery operations may reflect broader political and economic considerations, including fuel pricing and supply control.

Single point of failure amidst global uncertainties
THE continued non-functionality of all the country’s refineries creates a single window of failure amid global uncertainties, as witnessed during the COVID-19 pandemic, the Russia-Ukraine war, and now the America/Israel-Iran war.

According to experts, these refineries’ installed capacity of 445,000 barrels per day could have complemented the shortfall from Dangote Refinery and offered a level of competitive advantage against a monopoly.

Furthermore, if operational, the assets would together strengthen the national supply and widen the country’s supply base.

In sharp contrast, the Dangote Refinery , with its 650,000 barrels-per-day capacity, now occupies a dominant position in domestic refining. While its scale offers the promise of meeting local demand and supporting exports, it also introduces structural vulnerabilities when not complemented by other operational refineries.
Globally, energy security is built not on singular strength, but on diversification. That remains notably absent in Nigeria’s current refining landscape.

Indeed, countries with stable downstream systems either operate multiple refineries or maintain flexible import channels to absorb shocks, but Nigeria’s current arrangement falls short of such standards.

The concentration of refining capacity in one major facility has undoubtedly created what stakeholders describe as a “single point of failure” in Nigeria’s fuel supply chain. This means that any disruption, whether technical, operational, or policy-related, affecting the dominant refinery could have immediate nationwide consequences, including supply shortages and price volatility.

The implications of non-functional refineries extend beyond fuel availability. Globally, refining capacity is central to industrial development, providing critical inputs for sectors such as manufacturing, construction, pharmaceuticals and petrochemicals.

against rising costs.

“Citizens, experts, and advocacy groups all point to the same solution: a functional, accountable, and locally managed refinery system that benefits the people rather than lining private pockets, but the big issue is the determination of the government to intentionally push for this,” the don lamented.

An energy expert, Ruth Lawal, agrees with Onyegbule, arguing that the government has failed in both transparency and implementation.

“Women are suffering a lot of hard times; some go to bed with an empty stomach. It is a horrible experience. At this point, it is crucial to give licenses to more operators in the industry to give room for commercialisation and competitiveness, which assuredly will crash the prices of petroleum products and make life easier for Nigerians.”

For the Chairman of the WRPC Support Staff Association, Dafe Ighomitedo: “The Warri Refinery is not working because of high government politics. A plant that was fixed, test-run and celebrated nationwide was shut down immediately after Nigerians applauded the feat. Yet, no concrete findings have been made!”

Mr Andy Odeh, the Chief Corporate Communications Officer (CCCO) of the NNPCL, failed to respond to calls and messages seeking updates on the refineries.

Finding a leeway
AS Nigerians continue to wallow in the misery that government’s actions and inaction have railroaded them into, stakeholders have emphasised the need for a comprehensive approach to addressing challenges in the downstream sector.

On the way forward, Prof. Adinikinju specifically advocated a public-private partnership (PPP) model, in which the government retains a minority equity stake, while the majority ownership and management are ceded to experienced private investors.

“We need private sector discipline and finance to drive efficiency. This will create a competitive domestic market, rather than a monopoly-driven system,” he said.

He added that a liberalised and competitive refining sector would not only meet domestic demand but also position Nigeria to tap into export opportunities across West Africa and the broader global market.

Adinikinju further urged the Federal Government to investigate the utilisation of funds by the NNPCL and set clear timelines for restoring the refineries to operation. He stressed that decisive action is required to ensure accountability and prevent further economic losses.

Nigeria’s downstream petroleum sector stands at a critical juncture. The injection of N3.25 trillion into the rehabilitation of Port Harcourt and Warri refineries was expected to restore balance to the market, strengthen supply security and reduce import dependence.

Instead, their continued inactivity has deepened structural imbalances, leaving the country reliant on a single dominant supplier and exposed to systemic risks.

Therefore, there is a need to ensure transparency in the utilisation of funds allocated to refinery rehabilitation, introduce private-sector participation to enhance efficiency, and create a regulatory framework that promotes competition and market discipline. Also, policies that balance support for local refining with the need to maintain supply flexibility will be necessary.