A review of financial records reveals that between 2020 and 2021, three major Nigerian refineries—Kaduna Refinery, Port Harcourt Refinery, and Warri Refinery—incurred debts totaling over N1.8 trillion owed to the Nigerian National Petroleum Company Limited (NNPCL). This massive indebtedness is attributed to NNPCL’s continuous funding of these refineries despite their poor performance and persistent losses.
Thank you for reading this post, don't forget to subscribe!In 2020, the Port Harcourt Refinery owed N438 billion, increasing to N476 billion in 2021. The Kaduna Refinery’s debt grew from N502 billion in 2020 to N558 billion in 2021. Similarly, the Warri Refinery owed N378 billion in 2020 and N415 billion in 2021.
Historical data highlights the refineries’ consistent financial mismanagement. In 2015, Kaduna Refinery reported revenue of just N21 million against an expenditure of N18.6 billion. Port Harcourt’s revenue was N215 million with an expenditure of N12.2 billion, while Warri reported N45 million in revenue and N15.5 billion in expenditures.
In 2016, revenue continued to lag behind expenditure, with Kaduna Refinery earning N208 million against N31.9 billion in spending, Port Harcourt earning N807 million and spending N28.2 billion, and Warri earning N89 million while spending N18.7 billion.
Despite significant NNPCL funding aimed at improving their functionality, these refineries have remained largely non-operational, leaving Nigeria reliant on costly fuel imports and exacerbating the country’s energy challenges.
