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Business Insider
29-04-2025
- Business
- Business Insider
Concerns mount as Nigerian refinery shuts down after $897.6m in maintenance funding
The recent shutdown of the Warri refinery barely a month after being declared operational, has sparked growing concerns over the transparency and efficiency of Nigeria's refinery management. According to a document from the Nigerian Midstream and Downstream Petroleum Regulatory Authority obtained by The Punch, the refinery, which absorbed $897.6 million in maintenance costs, failed to produce Premium Motor Spirit (petrol) and was shut down just a month after former NNPC Group CEO Mele Kyari declared it operational. Industry operators and experts have expressed disappointment over the situation. Further findings revealed that the Port Harcourt Refining Company, which resumed operations in November 2024, is operating at less than 40% of its capacity. Despite substantial investments and rehabilitation initiatives, these refineries continue to face operational challenges that hinder their full functionality. The refinery, commissioned in 1978, was designed to supply markets in Nigeria's southern and southwestern regions. Its petrochemical plant has a capacity of 13,000 metric tons of polypropylene and 18,000 metric tons of carbon black annually. Despite receiving $897.6 million in maintenance funding, the refinery ceased operations on January 25, 2025, due to safety issues in its Crude Distillation Unit Main Heater—raising fresh doubts about oversight and performance under the Nigerian National Petroleum Company Limited (NNPCL). Revamp efforts hit wall Nigeria's government-owned refineries have long been plagued by neglect, mismanagement, and corruption—persistent symptoms of the country's troubled oil sector. Despite renewed efforts to rehabilitate the Port Harcourt, Warri, and Kaduna refineries in a bid to reduce dependence on imported petroleum products and boost domestic refining capacity, progress remains slow and uneven. Hopes were briefly rekindled when private sector investments, particularly the Dangote Refinery, emerged as potential game changers for Africa's top oil producer, which has relied on imported fuel for decades. Despite initial optimism, recent developments cast doubt on the government's seriousness in revamping its moribund refineries. According to the NMDPRA document obtained by The Punch, the Warri Refining and Petrochemical Company was shut down on January 25, 2025, due to safety concerns with its Crude Distillation Unit (CDU) Main Heater—barely a month after being declared operational. Meanwhile, the Port Harcourt Refinery, which resumed operations in November 2024, is operating at just 37.87 percent of its installed capacity, far below the 70 percent claimed by NNPC spokesperson Femi Soneye. The refinery, with a nameplate capacity of 60,000 barrels per day, produced an average of 82.55 million litres of refined products monthly between November 2024 and April 2025—about 135.45 million litres short of its optimal output of 218 million litres. These figures sharply contradict NNPC's projections at the plant's recommissioning, where the firm claimed the facility would deliver daily outputs of 1.4 million litres of Straight-Run Gasoline for blending into Premium Motor Spirit (PMS), 900,000 litres of kerosene, 1.5 million litres of diesel, and significant quantities of LPG and jet fuel.
Business Insider
24-04-2025
- Business
- Business Insider
Authorities reveal the reason why smuggling Nigerian fuel to other countries has become attractive
Nigerian authorities have highlighted a nagging problem in the country's oil sector, which is the smuggling of petroleum products, intended for domestic use, outside the country. Despite the removal of fuel subsidy, it is still profitable for smugglers to take fuel illegally from Nigeria. Nigeria's relatively cheaper pump price encourages the illicit export of Premium Motor Spirit to neighboring nations. Price differentials fuel smuggling operations, leading to the launch of the operating Whirlwind initiative. The Nigeria Customs Service, via the group's Comptroller General, Adewale Adeniyi, not only highlighted the problem but disclosed that the illegal activity is thriving. His assessment touched on the glaring difference between fuel prices in Nigeria and fuel prices outside the country. Speaking during the service's first quarter performance review held in Nigeria's capital, Abuja, on Tuesday, the Comptroller General stated that 'Despite the removal of the fuel subsidy, it is still profitable for smugglers to take fuel illegally from Nigeria. You know that the prices are dynamic.' He also disclosed that even though Nigeria no more offers fuel subsidies, the relatively cheaper pump price still encourages the illicit export of Premium Motor Spirit to nations like the Benin Republic, Cameroon, and Niger. While PMS costs between N880 and N950 per litre in Nigeria, Adeniyi pointed out that the identical product is sold for significantly more in neighboring nations. What the Nigeria Customs Service highlighted about fuel smuggling The same product "Is lower compared to around N1600 and N2000 per litre in Cameroon, Niger, and the Benin Republic,' he stated. Even if the local costs of gasoline have significantly decreased in certain of these nations, the Customs chief emphasized that smuggling operations are still fueled by this large price differential. as seen on the Punch Newspaper. 'While the price of the products is coming down to around N850 and N900 per liter in places like Cameroon, it is close to N2,000 per liter, in Niger, it is N1,600 per liter, and the same with the Benin Republic,' he said. 'This arbitrage provides the incentive. That is why we launched the operating Whirlwind,' he added. In May 2023, prior to the president's inauguration and his declaration of the removal of fuel subsidies, fuel in Nigeria sold for ₦238.11 per liter; however, in May 2024, it sold for approximately ₦770 per liter. Currently fuel price is going for an average of ₦900.
Zawya
21-04-2025
- Business
- Zawya
Nigeria: Customs intercepts $623,179 crude oil, others in South-East
The Federal Operations Unit, Zone C in Owerri at the weekend announced the seizure of N1,010,113,880.00 worth of contraband which included 78 Jerry Cans of 25 litre of Crude Oil, 102 bottles of 75 litres of Diesel, 80 Jerry cans of 25 litres of Premium Motor Spirit (PMS) amongst others in the South Eastern part of the country in the last one month. In a statement released by the Unit at the weekend, the Unit added that N13,451,848 was generated from Demand Notices (DN) within the period under review. During his first press briefing at the unit's headquarters in Owerri, the Customs Area Controller of the Unit, Comptroller Bishir Abdullahi Balogun stated that no matter the intentions of smugglers and their patronizers, the unit will not relent in carrying out its statutory functions which are backed up with intelligence-driven strategies by the Comptroller General of Nigeria Customs Service Bashir Adewale Adeniyi. The new Controller, while frowning at smuggling, stated that it is economic sabotage to bring in prohibited goods into the country which has negative impact on local industries, and affects the well-being of individuals. Notable among the seizures made by the Unit include: 725 Bales of second-hand used clothing; 2762 Rolls of Satin Fabrics of 60 yards; 2589 used tyres; 233 Sacks of 2Kg foreign Rice; 181 Rolls of Wall Covering; 102 Bottles of 75Cl Diesel; 8 Jerry cans of 25L of PMS; 78 Jerry cans of 25L Crude Oil; 32 New Tyres; 25 Bales of Cannabis Sativa; 24 Bottles of 150Cl of Diesel; 14 Bags of 50kg foreign rice; 3 Carton of Bedwine; one sack of used shoes; one Scannia Container Body truck with Registration number T 281 A2LA; one Mercedes Truck with Registration number NKE 323 XE; amongst others. The Controller of the unit while Commending officers/men of the unit during the briefing anchored his successes to focus, diligence, professionalism, and decision to contribute his quota to national economy, by blocking all revenue leakages, enforcement of trade facilitation and taking charge of the nation's entry points which is of uttermost importance to the unit. In continuation, he reiterated that the unit must work together to support the administration of President Bola Ahmed Tinubu (GCFR) and the CGC BA Adeniyi (MFR) to succeed. He also called on traders and stakeholders to be compliant, as our officers are professionally trained to checkmate the activities of non-compliant traders and block likely areas of revenue leakages. In our inter-agency collaboration, the seized cannabis sativa shall be handed over to NDLEA. These timely successes and achievements are a result of the purposeful leadership of the Comptroller General of Customs, high-level of professionalism, commitment, and teamwork. He further added that the unit is also determined to sanitize the zone of any form of un-customs activities and facilitate legitimate is committed to the consolidation of successes achieved, collaborative engagement with critical stakeholders, and innovative ideas in its dealings to ensure efficiency and effectiveness in customs operations. The Controller used the medium to thank the sagacious CGC and his entire management team for their dynamic leadership styles and qualities. In conclusion, the controller commended the media for their continuous support and for spreading the gospel. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
