Why FG Must Focus on Rehabilitating Port Harcourt, Warri, Kaduna Refineries — PETROAN
- PETROAN has said Nigeria’s refineries were abandoned for years despite their economic importance
- It noted that operations in the Port Harcourt refinery boosted business activities in host communities
- Functional refineries could reduce fuel prices and dependence on imports, according to PETROAN
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has advised the federal government on what to do with the moribund state-owned refineries — the Warri, Kaduna and Port Harcourt Petroleum Refineries.
According to a statement signed by PETROAN’s National Public Relations Officer, Dr Joseph Obele, and shared with Legit.ng, these three refineries were abandoned for several years, despite their importance to the country’s energy security and economy.
Source: Getty Images
Dr Obele recalled that the Port Harcourt Refinery was rehabilitated at a cost of about $1.5 billion and resumed operations in November 2024. However, he noted that the refinery was shut down again on May 24, 2025, alongside similar operational challenges affecting the Warri and Kaduna refineries.
He said the brief return of operations at the Port Harcourt Refinery had a positive impact on surrounding communities, with increased business activities and employment opportunities, particularly for youths, recorded within the first six months.
Abandoned refineries will be political talking point
According to the PETROAN spokesperson, the condition of the refineries is likely to feature prominently in political campaigns, with both ruling and opposition parties expected to highlight issues such as abandonment, neglect, mismanagement and alleged fraud.
Dr Obele explained that beyond job creation, the sustained operation of the refineries would introduce competition in the downstream petroleum sector, which could help reduce petroleum product prices.
He argued that having multiple functional refineries would reduce reliance on fuel imports, improve supply stability and create pricing advantages for consumers.
He advised the ruling party to ensure that the Port Harcourt, Warri and Kaduna refineries resume and sustain operations by the first quarter of 2026, arguing that visible outcomes such as job creation and increased economic activities could influence voter perception.
He concluded that the political party seen as genuinely committed to reviving and efficiently managing the nation’s refineries could get voter support in the next general election.
He said:
“My advice to the ruling party is to take decisive action to ensure that the nation-owned refineries resume and sustain operations by the first quarter of 2026. This will provide a strong campaign advantage through visible outcomes such as job creation, a surge in business activities, and renewed engagement with host communities.”
Source: Getty Images
PETROAN in talks with NNPCL on possible acquisition of refinery
Meanwhile PETROAN said it is having an ongoing discussion with the Nigerian National Petroleum Company Limited (NNPCL) over the possible acquisition and revival of the Port Harcourt Refinery in Rivers State.
PETROAN’s president, Dr Billy Gillis-Harry, disclosed this in an interview with Daily Trust, saying the move is aimed at boosting Nigeria’s local refining capacity and strengthening indigenous participation in the oil and gas value chain.
PETROAN engaging potential co-investors
Legit.ng earlier reported that the association was engaging potential co-investors from Ukraine and Georgia, who have expressed readiness to support the acquisition of the Port Harcourt refinery.
Dr Gillis-Harry explained that about $2 billion would be required to kick-start the refinery’s rehabilitation, adding that discussions are ongoing to formalise arrangements, including the signing of letters of interest with investors.
According to him, reviving the Port Harcourt Refinery would help stabilise petroleum product prices, stimulate economic activities, and align with President Bola Tinubu’s Renewed Hope Agenda.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
