Port Harcourt, Rivers State – The Nigerian National Petroleum Company Limited (NNPC Ltd) has confirmed that the Port Harcourt Refinery will remain under state ownership, reversing earlier considerations of selling the facility in 2024. Chief Executive Officer Bayo Ojulari announced that the refinery will undergo a comprehensive rehabilitation to ensure its long-term sustainability, reinforcing its role in Nigeria’s energy strategy.
The Port Harcourt Refinery, a critical national asset, has been a financial burden, incurring monthly operating costs of 300 to 500 million naira (approximately $200,000 to $333,000). Designed to process 210,000 barrels of crude oil daily across two units, the facility currently operates at just 40% capacity due to years of degradation, limiting output and straining NNPC Ltd’s finances.
Rehabilitation Program Under Review
The rehabilitation of the Port Harcourt Refinery is part of a $3 billion initiative that also includes the Warri and Kaduna refineries. Approximately $1.5 billion was allocated for Port Harcourt, but NNPC Ltd has paused the project to reassess the timeline and execution strategy. The company is now focusing on a thorough, phased maintenance approach to preserve strategic assets rather than divesting them.
This decision comes as Nigeria, Africa’s top crude oil producer, continues to rely heavily on imported refined products. In August 2025, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reported oil production at 1.71 million barrels per day, a 10% increase from July 2024. However, the country’s dependence on fuel imports remains a significant economic challenge.
Strategic Shift Amid Rising Domestic Capacity
The move to retain and rehabilitate the Port Harcourt Refinery aligns with the gradual operational start of the Dangote Refinery, which boasts a capacity of 650,000 barrels per day. This private facility is already transforming Nigeria’s fuel supply dynamics and is expected to significantly reduce import costs in the coming years.
By maintaining control of the Port Harcourt Refinery, NNPC Ltd aims to strengthen Nigeria’s refining capacity, secure domestic fuel supply, and alleviate the fiscal pressure of imports. The rehabilitation effort underscores the refinery’s pivotal role in the nation’s quest for energy self-sufficiency.
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