Tinubu Urged to Rethink Dead Refineries Rehabilitation

In an open letter to President Bola Ahmed Tinubu, concerns are raised regarding the rehabilitation of Nigeria's four dead state-owned refineries, which have a combined capacity of approximately 445,000 barrels per day. The refineries, located in Port Harcourt (Old and New), Warri, and Kaduna, have not produced domestically consumed petroleum products for years.

The Federal Executive Council approved around $1.5 billion for the rehabilitation of the Port Harcourt refinery in 2021, with additional approvals for Warri and Kaduna totaling approximately $1.484 billion. The NNPC reported about N100 billion in rehabilitation expenditures in 2021.

From 2010 to 2020, the refineries incurred approximately N4.8 trillion in operating costs and accumulated losses of about N366.5 billion. A 2023 House motion cited a cumulative figure of N11.35 trillion allocated for renovations since 2010.

The NNPC's 2024 report indicated that N1.4 trillion had been drawn for the Port Harcourt refinery's rehabilitation contract, emphasizing the need for forensic accounting to assess the financial viability of further investments.