The reconstruction of Nigeria’s state-owned refineries, as described by the country’s richest man, Aliko Dangote, has been a complete waste of resources.
Dangote claimed that the possibility of the state-owned Port Harcourt, Warri, and Kaduna refineries being operational again was very unlikely.
“What we are saying is that sale is not out of the question. All the options are on the table, to be frank, but that decision will be based on the outcome of the reviews we’re doing now,” the NNPC chairman said, during an interview with Bloomberg in Vienna.
As recently reported in the Punch newspaper, the idea appears to have gained popularity among primary stakeholders in the country’s oil sector.
In favor of the planned sale of Nigeria’s refineries under the control of the Nigerian National Petroleum Company Limited, oil marketers and industry players have urged accountability, openness, and inclusivity in the process.
According to the marketers, the sale and privatization of the refineries could halt what many have called a financial black hole, guarantee fairer pricing, and allow competition in the downstream sector.
Given the assets’ history of inefficiency, Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, said that the privatization of the assets appears to be the most sensible course of action.
Nonetheless, Gillis-Harris questioned the reasons for the timing of this discussion in an interview with The Punch on Sunday, stating, “We need to be sure of what is driving this process and understand what is the influence behind it.
Well, if you go back a few months, PETROAN had done a very careful evaluation of the situation, and we had advised that privatisation of the refinery will be the best option.”
He also added, “And we still maintain the same mindset. So if NNPCL has come around, almost about six months or thereabout to get to the same conclusion. It only tells you that PETROAN does a very well detailed empirical analysis. We do wish them well.”
Nigerian refineries and billions wasted
Several billion dollars have been spent to revive Nigeria’s state-owned refineries. In March 2021, the federal government authorized $1.5 billion for the Port Harcourt refinery’s renovation.
Later that year, the Federal Executive Council (FEC) authorized $1.48 billion for the phased restoration of the Warri and Kaduna refineries, which have timeframes of 21, 23, and 33 months, respectively. Despite the significant expenditure, the facilities still do not produce any refined goods.
In December 2024, Nigeria declared the first phase of refurbishment at the Port Harcourt refinery complete, however, fuel traders noted that they were unable to access gasoline from the plant or the Warri refinery, both operated by the state-owned NNPC.
The Warri Refinery shut down operations in April, 2025, sparking concern over the transparency and effectiveness of its costly rehabilitation.
The refinery which absorbed $897.6 million in maintenance costs, failed to produce Premium Motor Spirit (petrol) and was shut down just a month after former NNPC Group CEO Mele Kyari declared it operational.
Africa’s richest man last week had spoken about the refineries, and the amount wasted on them over the years, stating; “As of today, they have spent about $18bn on those refineries, and they are still not working. And I don’t think, and I doubt very much if they will work.”
He narrated how administrative change halted his initial plans to acquire the refineries, thus leading to the construction of his own oil-refinery.
