- Nigeria spent billions on refineries that still fail to function.
- Experts argue that full divestment will free funds for national development.
The debate over Nigeria’s ageing refineries has intensified again, and Nigeria’s refinery challenge now dominates the national conversation. The Federal Government has openly admitted that the four plants no longer justify their massive costs.
Therefore, officials have begun exploring the possibility of full or partial divestment. Since the issue has persisted for decades, many Nigerians now support bold action to end the waste. This renewed push highlights Nigeria’s refinery challenge and the urgent need for realistic solutions.
During the International Petroleum Exhibition in Abu Dhabi, the President’s Adviser on Energy, Olu Verheijen, confirmed that the government is seeking capable partners. She explained that Nigeria needs investors with both technical skill and financial strength. Because the refineries have failed repeatedly, she noted that a partnership or sale appears more sensible than continued repairs.
Nigeria owns four non-performing refineries in Port Harcourt, Warri and Kaduna. They have a combined capacity of 445,000 barrels per day. Yet they remain idle. Since the 1990s, the government has spent billions on turnaround maintenance. However, none of these efforts restored stable operations. Last year, officials announced the restart of the Port Harcourt Refinery. Soon after, the plant stopped again without a clear explanation.
Reports show that Nigeria has spent over $25 billion trying to revive these facilities. The House of Representatives is investigating how $18 billion allocated between 2010 and 2024 was spent without yielding meaningful results.
Despite this, staff salaries continue to rise. The Nigerian National Petroleum Company Limited (NNPC) reportedly paid N69 billion in wages in 2020 alone. Between 2021 and 2024, idle staff cost the government N272 billion. Since the plants remain dormant, many citizens now question the rationale for continued funding.
Successive governments utilised these refineries as a means to generate political revenue. Labour unions also blocked attempts to sell them. Yet circumstances have changed. Dangote Refinery and several modular refineries now operate locally. Therefore, Nigeria has regained some domestic refining capacity without government-owned plants.
Dangote’s plan to increase output to 1.4 million barrels per day next year strengthens the case for divestment. Since the private sector has shown better capacity, experts argue that the government should step aside. They insist that funds wasted on these assets can support health, education and infrastructure.
The government must now concentrate on regulation and sector governance rather than operations. Because the refineries continue to drain national resources, decisive action is overdue.