Marketers Give Fresh Conditions for Port Harcourt, Warri Refineries to Begin Operations
- PETROAN demands binding agreements for reliable crude supply to ensure refinery operations succeed long-term
- Refurbishing Nigeria’s refineries alone isn't enough; commercial viability and infrastructure improvements are crucial
- Local refining expansion has significantly reduced petrol imports, boosting Nigeria’s energy independence
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The planned restart of Nigeria’s Port Harcourt and Warri refineries must be backed by guaranteed crude oil supply, clear commercial agreements and strict performance targets, petroleum marketers have said.
The Petroleum Products Retail Outlets Association of Nigeria (PETROAN) warned that completing rehabilitation work alone would not guarantee sustained refinery operations, stressing that the facilities must be able to run consistently and profitably.
Source: Getty Images
PETROAN National President, Dr Billy Gillis-Harry, said the success of the refineries should not be measured by commissioning ceremonies or brief production runs, but by their ability to maintain commercial operations over time.
He said key indicators should include crude throughput, plant availability, operating margins and returns on capital.
The development came a few days after President Bola Tinubu gave assurances that the nation's refineries will work optimally.
PETROAN wants binding agreements
The association urged the Nigerian National Petroleum Company Limited (NNPC Ltd) to move beyond plans and memoranda by signing binding commercial agreements with clearly defined completion dates, throughput guarantees and penalties for non-performance.
PETROAN also called for strict enforcement of the Domestic Crude Supply Obligation under the Petroleum Industry Act, transparent crude-pricing mechanisms and reliable infrastructure for transporting crude to local refineries, according to a report by PetroleumPriceNG.
The demand comes against the backdrop of persistent concerns over crude supply to domestic refining facilities.
Data from the Nigerian Upstream Petroleum Regulatory Commission showed that 61.9 million barrels of crude were allocated to domestic refineries in the first quarter of 2026.
However, only 28.5 million barrels were actually delivered.
PETROAN warned that without dependable feedstock, Nigeria could end up with expensive refurbished refineries that remain unable to sustain commercial production.
335,000bpd capacity at stake
The return of the Port Harcourt and Warri refineries would restore about 335,000 barrels per day of refining capacity.
Port Harcourt accounts for about 210,000 barrels per day, while Warri has a capacity of 125,000 barrels per day.
According to PETROAN, bringing the facilities back into sustained operation would increase competition, diversify petroleum supply and provide a buffer when other domestic refineries experience maintenance or operational disruptions.
The association noted that Nigeria’s dependence on imported petrol has already fallen sharply as local refining expands.
Petrol imports dropped from N2.271 trillion in the first quarter of 2025 to N87.4 billion in the corresponding period of 2026, while domestic refineries supplied approximately 76.7 per cent of national petrol volumes during the quarter.
Lessons from Nigeria’s costly refinery history
PETROAN said Nigeria’s long history of refinery rehabilitation shows that funding alone cannot solve the sector’s problems.
The association pointed to governance, technical management, accountability and commercial incentives as equally critical to ensuring that refurbished facilities remain operational.
It estimated that about $4.15 billion was spent on interventions involving the Port Harcourt, Warri and Kaduna refineries between 1993 and 2019, while another $3.14 billion intervention package was approved in 2021.
The Port Harcourt refinery briefly resumed operations in late 2024 before shutting down again on May 24, 2025, for maintenance initially expected to last 30 days.
Against this backdrop, PETROAN wants the proposed technical equity partnership between NNPC Ltd and Chinese companies to become a binding commercial agreement.
Source: Getty Images
The association is seeking guaranteed crude supply, completion deadlines, throughput and availability targets, liquidated damages for non-performance, disclosure of equity and capital commitments, independent technical due diligence and effective transfer of technical expertise to Nigerian engineers.
It also stressed the need for stronger product evacuation infrastructure so that restored refining capacity translates into reliable, commercially viable output rather than another cycle of costly rehabilitation and prolonged shutdowns.
Nigerian billionaire’s refinery sets to begin PMS production
Legit.ng earlier reported that Nigerian energy company Aradel Holdings Plc is targeting 2027 to begin producing petrol at its modular refinery in Rivers State, potentially adding another domestic source of fuel to Nigeria’s rapidly changing downstream market.
Temitayo Ogunbanjo, who oversees Aradel’s refining business, disclosed the plan on the sidelines of a conference in Abuja, saying the removal of petrol subsidies and deregulation of the downstream sector had created a clearer commercial path for local refiners to produce petrol.
The 11,000-barrel-per-day facility currently produces kerosene, diesel, gas oil and naphtha. The company is now considering petrol production as part of plans to expand its refining operations.
Source: Legit.ng
