The shutting down of the Port Harcourt Refinery, the biggest refinery in the country has caused the Nigerian government over $249.7 million equivalent of N366.210 billion, in the period of five months, from May 24, 2025 to October 31, which is the period of 156 days.
The refinery, located at Eleme axis of Rivers State, was revived on November, 2024 and commenced operations thereafter.
The Nigerian National Petroleum Company Limited (NNPCL) had stated that the revived plant has the production capacity of 60,000 barrels-per-day and was producing at least 1.4 million liters of Premium Motor Spirit (PMS) every day.
Also, the NNPC stated then that the refinery was producing straight-run gasoline (Naphtha) blended into 1.4 million litres of PMS daily; 900,000 litres of kerosene; 1.5 million litres of Automotive Gas Oil (Diesel); 2.1 million litres of Low Pour Fuel Oil (LPFO), and additional volumes of Liquefied Petroleum Gas (LPG), also known as cooking gas.
The Den recalls that the Federal Government had approved $1.5 billion in 2021 for the comprehensive rehabilitation of the refinery, before the NNPCL under Mele Kyari’s leadership reopened the Old Port Harcourt Refinery on Tuesday, November 26, 2024.The Refinery was shut down on May 24, 2025, for planned maintenance and a sustainability assessment, according to NNPCL, barely six months after a previous period of operational resumption following a $1.5 billion rehabilitation project.
With the landing cost of PMS standing at N900 per liter multiplied by 1,400,000, this amounts to N1,260,000,000 daily and N196,560,000,000 (N196.560bn) in 156 days.
Also, the price of Kerosene which is N1,005 per liter multiplied by 900,000 gives N904,500,000 and N141,102,000,000 in 156 days.
Similarly, the price of Diesel which is N1,220 per liter, totalling N1,220 multiplied by 1,500,000, making N1,830,000,000 and N285,480,000,000 in the 156 days analysed by this Reporter.
The figures bring the total losses occasioned by the shutting down of the refinery to N366.210bn, equivalent of $249.7 million in five months and six days.
Why refinery was shut – NNPCL
Recently, the Nigerian National Petroleum Company Limited (NNPCL) had disclosed that it was losing between N300 million and N500 million every month operating the Port Harcourt refinery before suspending rehabilitation works at the facility.
However, some staff in the refinery on the condition of anonymity revealed that the amount could be the sum used in bringing in refined products from other refineries to Port Harcourt refinery in the name of production.
The staff who said they are barred by the management of the refinery from speaking with the press said the Port Harcourt refinery did not produce as claimed, as products were brought in from somewhere to sell out to marketers.
But the NNPC’s Group Chief Executive Officer, Bayo Ojulari, while addressing a delegation from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) led by its President Festus Osifo, few weeks ago, attributed the refinery’s poor performance to years of neglect and fundamental structural problems that made profitable operations impossible.
He said: “When I resumed, one of the first priorities I focused on was the refineries, to have a quick review, to see whether we could quickly fix it.
“What I found is that we were losing between N300 million to N500 million monthly on the overall refinery. For Port Harcourt, we were sending in about 950,000 barrels as cargo, but less than 40 per cent was coming out.”
