Despite billions spent on rehabilitation, the Warri Refinery remains idle, deepening economic hardship in host communities. Stakeholders accuse the government of neglect, warn against privatisation, and question the proposed NLNG model. As frustrations grow, calls for transparency and immediate action are mounting to bring the facility back to life, reports ELO EDREMODA
The moribund state of the Warri, Port Harcourt, and Kaduna refineries has remained a significant burden on both citizens and the government. Once thriving facilities, these refineries now leave thousands of workers without livelihoods, while consuming staggering sums of public funds for repairs that have yet to yield meaningful results.
Established over three decades ago, these refineries were envisioned as cornerstones of Nigeria’s energy self-sufficiency — aimed at reducing fuel imports, serving local demand, and generating revenue for the country. However, over the years, they gradually deteriorated and eventually collapsed, triggering a ripple effect: persistent fuel scarcity, soaring pump prices, and the consequent rise in the cost of food and other essentials.
The Warri Refining and Petrochemical Company, for instance, has operated far below capacity over the past decade. In 2021, the federal government allocated approximately $897.6 million for its rehabilitation. The following year, an additional $497.3 million was approved for “quick fix” repairs. On December 30, 2022, operations briefly resumed — raising hopes for a turnaround — but the plant was abruptly shut down just weeks later, dashing those expectations. Commissioned in 1978, the Warri refinery is located in Ekpan and extends into parts of Ubeji in Uvwie and Warri South Local Government Areas of Delta State. In its heyday, it was a catalyst for economic growth and urban development across the twin cities of Effurun and Warri. Beyond its core staff, the refinery sustained countless locals, including the well-known “jerrican boys,” who depended on its daily operations for survival.
By 2015, however, the facility had completely halted operations. Today, insiders familiar with the situation claim the plant is technically ready to operate. Yet, for reasons still unclear, final approval has not been granted. They also express concern that the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, has yet to visit the site — a move they believe could signal the much-needed political will to revive the refinery.
“Our challenge right now is that the new GCEO hasn’t visited the plant, so we’re unsure of his plans — even though he seems to be a man of good intentions. From all he has said so far, he appears to have a genuine vision. As I speak to you, the Warri Refinery is ready to operate. Area One — the Topping Unit — is fully prepared to run. We don’t understand what’s causing the delay. As you know, instructions need to come from Abuja. That unit produced AGO and DPK the last time it ran. While there were some issues then, those components have since been replaced.
“Area Three — the Fluid Catalytic Cracking Unit — has also undergone substantial maintenance. However, there are growing doubts about whether there is a real intention to restart the plant. If the GCEO truly planned to bring it back online, he would have come to assess the situation firsthand. There are rumours that management may be considering handing the plant over to a third party, but we don’t have any confirmation on that.
“The only section that hasn’t been touched yet is Area Two — the Reformate Unit. The truth is, politics is killing the refineries. Rather than get them running, some prefer the quick profits from crude swaps. They’ll claim Nigerians consume a million barrels, even though actual consumption is far less. Before this last round of maintenance, the refinery was operational — but we were told to shut it down. Right now, the plant is capable of running at up to 90 percent capacity,” the source said.
On claims that workers are idle at the refinery, another source clarified: “There are other ancillary operations ongoing. For instance, we generate power and supply it to the Nigerian Gas Company and the Pipelines and Product Marketing Company (PPMC). Previously, we also received products which we then transported to PPMC for loading. But now, those products are being diverted to private depots.”
He added that repair work at the plant is nearing completion, but a preservation phase will follow: “They are rounding off repairs at the plant, but we’ll carry out a nine-month preservation process to prevent any risk of explosion whenever the plant is eventually restarted.” On staff welfare, the sources expressed optimism that long-standing concerns raised by backup staff — which had led to several rounds of industrial action — would soon be addressed. “There are strong signals that he (Ojulari) will do the needful regarding their demands,” one of them said.
To sell or not to sell
The question of whether Nigeria’s refineries should be sold continues to divide opinion. However, many stakeholders insist that privatization is not the solution, pointing to the poor outcomes of previous government divestments. They argue that the refineries — particularly the Warri Refining and Petrochemical Company (WRPC) — could be fully operational within months if the government was genuinely committed to their revival.
In August, the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, reaffirmed the federal government’s st ance, stating that the refineries would not be sold — a statement meant to quell rising concerns over a potential sale. Reacting to this, the President-General of Uvwie Kingdom, Chief Hope Erute, questioned the contradiction between the government’s claims and the current state of the refinery. “If they are not selling, why is it not producing?” he asked. “If we examine the outcomes of similar sales, you would naturally say ‘no’ to privatisation. In all those cases, the impact on communities has been minimal at best.”
Chief Erute highlighted the socio-economic toll the non-functional refinery has taken on host communities. “Those who depend on it for their livelihoods are perpetually down. The communities are not exactly happy with what is going on. But again, the community is helpless. We are always unable to pressure the government to do what it should. That is the dilemma we face.” He noted that when the refinery was active, young people were “unofficially” engaged through indirect jobs and contracts. Many, he warned, now risk turning to petty crime out of desperation.
“When Warri refinery was working, small contracts were awarded within the host communities. I am a grassroots man — I can tell you that what we used to call ‘jerrican boys’ are gradually disappearing. And when they’re no longer busy, they turn to petty robberies, which disrupt communities, movement, and nightlife.” He also pointed out the safety risks posed by idle tanker trucks parked along highways waiting for assignments: “Trucks remain parked along the highways, causing hazards. And because fuel prices are high, prices of food and other commodities also shoot up. It’s a vicious cycle that hurts businesses.”
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Chairman of the Ubeji community, Mr. Mayomi Mone, echoed similar sentiments in a phone interview: “The Warri refinery needs to work — it just needs to work. Too many families, both directly and indirectly, depend on it. Now, they’re suffering from the economic hardship.” Mone lamented the current state of the depot, once a hub of activity, now overrun by weeds. “If you go there now, it’s all bushy. People are hungry. When the plant was operational, even visitors benefited. Now school has resumed, and more than five people have called me to ask for help enrolling their children. When I asked why they didn’t plan ahead, the response was: ‘NNPC no dey work, job no dey.’ And they’re not even asking for school fees — just the basic registration.”
Chief Erute also questioned the inconsistent messaging around the refinery’s status. “It has become a pattern. One moment they say it’s working; the next, it’s not. It needs to work. They shouldn’t keep giving us lip service. They should be professional and transparent in their communications.” He criticised past administrations for a lack of honesty, which, he said, made it difficult for communities to offer meaningful support. “Successive governments have ruled us with deceit, not telling us the truth. This has made it hard for society to know how best to support government efforts.”
Despite the challenges, Erute assured that the communities remain committed to supporting the refinery’s revival. However, he criticized the company’s poor handling of Corporate Social Responsibility (CSR), referencing a disagreement between Uvwie Kingdom and the refinery management. He further noted that disregarding employment protocols — especially the preferential engagement of lower cadre staff from host communities — often sparks avoidable tensions. “Still, we’ve learned to bear it, so that we are not accused of being the ones stalling operations. We’re now looking, together with them, to understand why production hasn’t resumed. Most of the refineries have abandoned their CSR obligations. We haven’t made a fuss about it — but they should be held accountable.”
NLNG model adoption
At a recent meeting with the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Ojulari revealed that the Nigeria Liquefied Natural Gas (NLNG) model was being considered as a possible approach to keep the country’s refineries afloat. Reacting to the proposal, Chief Erute expressed concern but ultimately accepted the idea — albeit reluctantly. “If the NLNG model is their alternative, so be it,” he said.
However, Mone outrightly rejected the model, warning that it could lead to skyrocketing fuel prices and further economic hardship for Nigerians. “It will not help. Anything that leads to privatising this refinery, expect that fuel will go for as high as N2,500 per litre,” he cautioned. “When the refinery was operational, it created a competitive environment — NNPCL sold at a lower rate than private depots. Now that no refinery is working, private depots fix prices however they want.” According to Mone, the presence of a functional refinery naturally controls prices. “If the refinery is running, it becomes harder for prices to spiral. But those who don’t fully understand the implications are the ones supporting privatisation.”
Stakeholders believe that reviving the Warri Refinery is entirely achievable — if the federal government and NNPCL are truly committed. They argue that the refinery’s collapse was largely due to poor oversight, lack of accountability, and a failure to enforce existing laws. “The government needs to sit down and get the refinery working,” said Mone. “Meter everything — what comes in and what goes out — to prevent losses. But if you just place someone there to manage operations without oversight, it will never work.” He also decried the failure of regulatory enforcement: “The Nigerian law is not working. If it was, those managers would be afraid to cut corners. But because there are no consequences, people do whatever they like.” He maintained that with strong leadership and proper direction, the Warri Refinery could resume operations in as little as three months.
For now, the fate of the Warri Refinery and Petrochemical Company (WRPC) hangs in the balance. While communities, workers, and industry stakeholders are united in their desire to see it return to full operations, the final decision lies with the federal government and the top management of NNPCL. The expectations are clear: the refinery must not only be brought back to life, but managed in a way that serves public interest — not just private profit.
