Petroleum marketers have called on the Federal Government to account for an estimated ₦11.35 trillion reportedly spent on the rehabilitation of Nigeria’s state-owned refineries, warning that the lack of transparency continues to erode confidence in the petroleum sector and deepen the country’s energy challenges.
In its 2025 sectoral review and outlook for 2026, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said despite years of heavy public expenditure on turnaround maintenance, the refineries in Port Harcourt, Warri, and Kaduna remain largely non-functional or underperforming.
The review, signed by PETROAN’s National President, Billy Gillis-Harry, and its spokesman, Joseph Obele, noted that massive funds have been deployed over the past decade with little to show in terms of sustainable production.
The association emphasized the importance of strict transparency and accountability, advocating for comprehensive forensic audits to track funds borrowed and spent. It warned that continued opacity would only encourage waste and undermine public trust in government investments.
PETROAN disclosed that approved rehabilitation contracts included about $1.5 billion for the Port Harcourt Refinery and a combined $1.48 billion for the Warri and Kaduna refineries, describing the scale of spending as alarming given the persistent operational failures.
According to the association, the situation has already drawn the attention of security agencies and legislative oversight bodies due to allegations of fraud, mismanagement, and inadequate accountability mechanisms.
PETROAN linked the refinery failures to wider downstream challenges experienced in 2025, including supply shortages and increased dependence on imported petroleum products. It recalled that the Port Harcourt Refinery was shut down on May 24, 2025, shortly after resuming operations, due to recurring mechanical and operational problems.
The shutdown, the group said, has further reduced domestic refining capacity, increased pressure on foreign exchange, and contributed to rising pump prices. It also noted the negative impact on host communities, many of whom depend on refinery activities for their livelihoods.
Beyond refinery concerns, PETROAN said the downstream sector faced severe instability in 2025 due to intense price competition between importers and local refiners, resulting in frequent price adjustments, financial losses for retail operators, and reduced profit margins.
While consumers enjoyed short-term relief, the association warned that the price war weakened long-term sustainability and investor confidence in the sector.
PETROAN also reviewed the naira-for-crude policy, under which between 250,000 and 300,000 barrels of crude oil per day were allocated to local refineries. Although the initiative helped ease foreign exchange pressure and supported domestic refiners, the association said its impact was limited by delays, supply inconsistencies, and pricing disputes.
On crude oil production, PETROAN noted a modest recovery in 2025, with output estimated at between 1.3 and 1.5 million barrels per day, including condensates. However, production remained below Nigeria’s OPEC quota due to oil theft, pipeline vandalism, aging infrastructure, and limited upstream investment.
Looking ahead to 2026, the association projected improved product availability but cautioned that affordability would depend on exchange rate stability, reliable crude supply, and balanced regulation.
PETROAN reiterated calls for refinery privatisation, transparent crude allocation, sustained stakeholder engagement, and strict accountability in public spending as key measures to stabilise Nigeria’s petroleum sector.
