Nigeria has recorded an estimated loss of N366.2 billion over the past five months following the shutdown of the Port Harcourt Refinery for maintenance and performance review, according to industry findings.
The refinery, situated in Eleme, Rivers State, was refurbished and reopened in November 2024 after a $1.5 billion rehabilitation project. However, operations were suspended again in May 2025, just six months later, for what the Nigerian National Petroleum Company Limited (NNPCL) described as a “sustainability assessment.”
Before the shutdown, the refinery was expected to process around 60,000 barrels of crude oil daily, producing 1.4 million litres of petrol, 900,000 litres of kerosene, and 1.5 million litres of diesel. With these production levels halted, the country is believed to have lost an average of over N1 billion daily — totaling more than N366 billion in 156 days.
NNPCL’s Group Chief Executive Officer, Bayo Ojulari, revealed that the company had been losing between N300 million and N500 million monthly from refinery operations prior to the shutdown, citing inefficiencies and structural problems. He said years of neglect had left the refinery unable to operate profitably.
However, some refinery employees have disputed NNPCL’s claims, alleging that the Port Harcourt facility never produced fuel as reported. According to them, refined products were instead brought in from other locations and distributed through the refinery, creating the impression of local refining.
Industry stakeholders have voiced frustration over the continued closure. The Independent Petroleum Marketers Association of Nigeria (IPMAN) called on the NNPCL boss to either fix the refinery or resign, arguing that the prolonged shutdown has caused job losses among tanker drivers, refinery workers, and host community members.
The National Association of Plant Operators (NAPO) also blamed monopolistic control in the downstream oil sector for hindering public refineries from functioning effectively. The group urged the federal government to allow competent private firms to manage the facility, warning that vested interests benefiting from fuel imports are working against its revival.
Petroleum economist Professor Wumi Iledare warned that Nigeria’s reliance on fuel imports during the refinery’s downtime worsens economic losses. He noted that every month the refinery remains inactive, the nation loses both foreign exchange spent on imports and the domestic economic value that refining would create.
Iledare, however, acknowledged that temporary shutdowns can sometimes prevent greater financial damage, stressing that efficiency, transparency, and accountability must drive decisions regarding public refineries.
For now, the Port Harcourt Refinery, which employs over 500 workers, remains silent. And as debates continue over its future, many Nigerians are questioning when — or if — the multi-billion-naira project will finally deliver the results it promised.
