Nigeria’s loss of N366.2 billion in five months following the shutdown of the Port Harcourt Refinery is yet another reminder of the deep-rooted lack of accountability that has long plagued the country’s oil sector.
Development Diaries reports that between May and October 2025 alone, Nigeria reportedly lost about N366.2 billion ($249.7 million) due to halted operations, according to an analysis by Daily Trust.
Despite the Nigerian National Petroleum Company Limited’s (NNPCL) claims that the shutdown was for ‘maintenance and sustainability assessment’, reports from refinery staff suggest that the facility may never have truly resumed production.
According to Daily Trust’s findings, there have been allegations that refined products were merely being routed through the Port Harcourt Refinery instead of being produced there.
If true, this situation undermines public trust in NNPCL’s leadership and in government reform efforts aimed at reducing Nigeria’s long-standing dependence on imported petroleum products.
After years of failed promises and repeated rehabilitation attempts, most recently a $1.5 billion revamp approved in 2021, Nigerians are once again left questioning how such massive investments yield little to no tangible results.
The refinery, which was said to have resumed operations in November 2024, was shut down barely six months later, reinforcing the cycle of inefficiency and waste that continues to drain public resources.
Beyond the financial loss, the shutdown has worsened unemployment and disrupted the energy value chain. Thousands of refinery workers, tanker drivers, and community members have been affected, while the country continues to spend scarce foreign exchange importing fuel, precisely what the refinery rehabilitation was supposed to end.
As petroleum economist Prof. Wumi Iledare observed, each idle month at the refinery costs Nigeria twice: through forex spent abroad and lost opportunities for local value creation.
It is time for decisive action. The NNPCL Group Chief Executive Officer, Bayo Ojulari, and the Minister of State for Petroleum (Oil), Heineken Lokpobiri must urgently provide transparent updates on the status of the Port Harcourt Refinery and publish detailed audit reports of the $1.5 billion rehabilitation project.
President Bola Tinubu must also ensure that those responsible for this costly inefficiency are held accountable. Nigeria cannot continue losing hundreds of billions while citizens bear the brunt of fuel scarcity and economic hardship.
Photo source: NNPCL
