Ghost refineries: P’Harcourt, Warri, Kaduna plants rot as workers turn idle

The refineries in Port Harcourt, Kaduna, and Warri are rotting away despite the over $3bn contract sum to resuscitate them, Sunday PUNCH findings have revealed.

Visits to the refineries by our correspondents in Rivers, Kaduna and Delta states confirmed that the humongous amount, which is now subject of investigation by the Economic and Financial Crimes Commission, failed to yield the desired result.

Sunday PUNCH gathered that refinery workers resume and close at any time because they have nothing to do.

A pattern of waste

These findings come against a backdrop of the country’s long-standing struggle with state-owned refineries, which have collectively cost billions in lost revenue due to reliance on imported petroleum products.

Despite being Africa’s largest oil producer, Nigeria imports nearly all refined fuel needs, which has fueled corruption allegations and economic woes for decades.

Public records and official statements show that the Nigerian National Petroleum Company Limited has overseen multiple rehabilitation efforts since the early 2000s, with promises of operational revival repeatedly unmet.

The investment of about $3bn across the major facilities was meant to end the cycle.

However, findings by Sunday PUNCH paint a picture of systemic failure, missed deadlines, and mismanagement.

The involvement of the EFCC stems from allegations of fund mismanagement.

In May 2025, the anti-graft agency grilled the recently sacked managing directors and top officials of the NNPCL over the alleged mishandling of the $3bn.

Port Harcourt: Promises unkept amid shutdowns

The Port Harcourt Refining Company, located in Alesa, Eleme Local Government Area of Rivers State, consists of two units: the older 60,000 bpd plant built in 1965 and a newer 150,000 bpd facility from 1989, combining for 210,000 bpd capacity.

The refinery was once a hub for producing petrol, diesel, kerosene, and petrochemicals, but it shut down in 2019 due to obsolescence and vandalism.

The $1.5bn rehabilitation, divided into three phases and slated for completion by 2025 was aimed to restore full capacity.

In November 2024, then-NNPCL Group Chief Executive Officer Mele Kyari, announced resumption at 70 per cent, projecting 1.5 million litres of diesel and 2.1 million litres of low-pour fuel oil daily, plus 1.4 million litres of petrol and 900,000 litres of kerosene.

However, Sunday PUNCH findings showed that there were only brief operations before issues arose.

By May 24, 2025, a former NNPCL spokesman, Olufemi Soneye, announced a 30-day shutdown for routine maintenance.

Stakeholders, including the Host Community Bulk Petroleum Retailers Association, expressed shock in June 2025, urging adherence to timelines to avoid deceiving Nigerians.

Twice, Sunday PUNCH visited the plant and reported that there were no activities going on, even as some workers were reported to be sleeping.

The reports were dismissed by the NNPCL.

On June 5, stakeholders under the aegis of the Host Community Bulk Petroleum Retailers Association of Port Harcourt Refinery Depot expressed shock over the prolonged shutdown.

They urged the Federal Government to adhere to the 30-day timeline it earlier promised, warning that failure to do so would amount to taking Nigerians for granted.

In July 2025, NNPCL said it was reviewing the rehabilitation plans.

In August 2025, the NNPCL backtracked on full rehab, admitting errors in the $1.5bn work and confirming incomplete status.

Sunday PUNCH visited the refinery again recently and discovered that the facility had remained dormant, with no production taking place.

Workers were seen moving in and out, engaged in administrative duties.

At the PHRC depot, located beside the refinery’s main complex, activities ground to a halt.

The once-busy truck park was empty, with no lifting of petrol or kerosene taking place. Only Automated Gas Oil (diesel) was being trucked out from old stock.

Some marketers milling around the depot described the situation as regrettable, saying the Federal Government misled Nigerians with the 2024 inauguration of the 60,000-barrel-per-day plant.

One of them, who asked to be identified only as Toku, said, “Since the last time Mele Kyari came, the depot loaded only a few trucks. After that, till today, the refinery has not been working. About three months ago, from the old stock, they were loading only DPK and AGO, but now it’s just AGO. The refinery is not producing anything. It is not working. So, let the government stop deceiving us.”

Another marketer, who spoke on condition of anonymity because he does not want to be victimised, claimed that the management planned to test-run the plant the previous week, but nothing happened.

He added, “From what I heard, they said the loading bay is faulty. So here, they are only loading AGO. But another thing is that only major and mega companies like NNPC and Oando are lifting for now. We, the independent marketers, can’t buy from the refinery because it is too expensive. Some of us go to private depots, which are cheaper.”

Warri refinery: Brief revival, swift collapse

The Warri Refining and Petrochemical Company, established in 1978 with a 125,000 bpd capacity, has a history of producing fuels and petrochemicals like polypropylene and carbon black.

Public data indicate it was shut down in 2015 due to pipeline vandalism and technical failures and had remained idle until the recent rehab.

The Federal Government approved $1.4bn for Warri and Kaduna in 2021, with Warri’s share at $897.6m.

Reuters reported resumption on December 30, 2024, after a decade.

Kyari, while declaring it open, projected initial operations at 60 per cent.

Findings by Sunday PUNCH during a recent visit showed that no production was ongoing at the facility.

The tanker park also lies empty with no flare visible from the chemical plant.

Aside from staff members who come and go for administrative work, the complex appeared deserted when one of our correspondents visited.

A source familiar with the operations said, “The WRPC staff come to work as a routine and go home at will. People are just collecting salaries, the refinery is not working.”

Another source, however, insisted that some maintenance was ongoing pending a new policy directive from the current NNPCL leadership.

“Every NNPCL administration has its own policy. This particular administration is yet to announce its policy as regards Warri Refinery,” he added.

Kaduna refinery: Endless rehabilitation

At the Kaduna Refining and Petrochemical Company, the story is the same. The loud machines, furnace flames and bustling worker traffic that once defined its operations have vanished.

Apart from a lone police post with a fading signboard, the compound appeared abandoned.

“This place used to be alive. You would see flames from the furnace, hear the noise of work going on. Now, nothing. They keep saying ‘maintenance’ but we have heard the same story for years with no end in sight,” said Paulina, a bar attendant in Kapam, a community bordering the refinery.

Another resident, Aisha Mohammed, said all promises for the take-off of the refinery had failed.

She said, “Even if the refinery starts operation at 60 per cent, that will be good. Last time, they promised similar targets, we saw flames, then silence. We are tired of promises.”

A security guard at the gate said nothing had changed.

He said, “They say ‘quick-fix,’ but the fix feels slow. Nothing much has improved: no jobs, no fuel, just bad roads and high prices.”

But locals say little has changed.

“This is like the coming of our Lord Jesus Christ, everybody is waiting, and it is not coming,” John, a Kapam resident, told Sunday PUNCH.

Billions of naira have been spent on the Kaduna refinery without results.

In February 2023, the NNPCL signed a $740.6m contract for a “quick-fix” repair, with officials promising 60 per cent production capacity by December 2024.

Critics, however, say the money has gone down the drain amid missed deadlines. The EFCC has also said it was probing the rehabilitation funds.

A former engineer at the refinery, who spoke under condition of anonymity to avoid being targeted, warned that prolonged inactivity and dwindling manpower could further cripple the project.

“When you leave a refinery idle for too long, corrosion sets in. Even if turn-around maintenance is completed, more workers will be needed. From over 1,200 workers before, fewer than 100 are left,” he said.

For residents of Kapam and neighbouring communities, the collapse of the refinery has devastated livelihoods.

Shops, transport businesses and housing once supported by the facility’s activity have dried up.

“Back then, workers would come to our shops every day,” said Musa, a kiosk owner near the gate.

“Now, people hardly pass here. Even security men have been reduced. We survive on small things, not like before.”

The NNPCL said it was committed to providing a lasting solution to the challenges facing the three refineries.

Speaking with Sunday PUNCH, its spokesperson, Andy Odeh, said, “The NNPC is determined to provide a sustainable solution to its three refineries in order to restore them into full operations. Detailed technical and commercial reviews of the Port Harcourt, Kaduna, and Warri refineries are ongoing.” (Punch)