Nigeria has spent an estimated N11.35 trillion over the past decade on the rehabilitation of its state-owned refineries, yet the facilities remain largely non-operational, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said.
In its 2025 sector review and 2026 outlook, PETROAN disclosed that billions of dollars were approved for the turnaround maintenance of the Port Harcourt, Warri and Kaduna refineries, with little to show for the massive investment.
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According to the association, $1.5 billion was allocated to the Port Harcourt Refinery, while $1.48 billion covered the Warri and Kaduna plants.
The group said the continued non-functionality of the refineries has triggered investigations by security agencies and legislative oversight bodies over alleged mismanagement, fraud and lack of accountability.
It called for forensic audits and clearer accountability frameworks to restore public confidence in the oil sector.
The review, jointly signed by PETROAN President, Dr Billy Gillis-Harry, and its spokesperson, Dr Joseph Obele, described 2025 as a pivotal year for Nigeria’s downstream petroleum sector amid regulatory reforms and increased competition from private refiners.
While noting progress in refinery licensing and development, PETROAN lamented persistent operational challenges, including the shutdown of the Port Harcourt Refinery in May 2025 despite heavy public investment.
It stressed that the inability of the refineries to sustain production highlights deep structural issues that must be urgently addressed.
The association urged improved transparency and reforms to ensure future investments deliver tangible results.
