Probe N11.35tn spent on NNPC refineries, entrepreneurs inform FG

The Petroleum Merchandise Retail Retailers House owners Affiliation of Nigeria has demanded that authorities totally account for an estimated N11.35tn reportedly spent on the rehabilitation of state-owned refineries, warning that continued opacity undermines confidence within the petroleum sector and worsens the nation’s power insecurity.

In its evaluation of Nigeria’s petroleum sector for 2025 and prospects for 2026, signed by the Nationwide President, Billy Gillis-Harry, and the spokesman, Joseph Obele, PETROAN stated that regardless of years of heavy public spending on refinery rehabilitation, the amenities have remained largely non-functional or underperforming.

The affiliation said, “Over the previous decade, huge public funds, reportedly round N11.35tn, have been expended on turnaround upkeep and rehabilitation of the 4 government-owned refineries (Port Harcourt, Warri, and Kaduna), but the amenities largely stay non-functional or underperforming.”

PETROAN emphasised, “Clear monitoring of funds borrowed and spent have to be prioritised. Full forensic audits are important to revive confidence in public investments. Clear accountability frameworks have to be enforced to stop additional waste of public sources.”

It disclosed that accepted contracts included “Port Harcourt Refinery: $1.5bn, and “Warri & Kaduna Refineries: Mixed $1.48bn,” noting that the size of expenditure had heightened issues throughout the downstream sector.

In accordance with PETROAN, “These vital outlays, coupled with the enduring non-operational standing of the refineries, have prompted investigations by safety businesses and legislative oversight our bodies into allegations of fraud, mismanagement, and lack of accountability.”

The affiliation stated transparency have to be prioritised, stressing that “Clear monitoring of funds borrowed and spent have to be prioritised.” It added that “Full forensic audits are important to revive confidence in public investments,” whereas insisting that “Clear accountability frameworks have to be enforced to stop additional waste of public sources.”

PETROAN linked the refinery failures to broader downstream challenges in 2025, together with provide constraints and elevated dependence on imports.

It famous that the Port Harcourt Refinery, Nigeria’s largest state-owned refining complicated, “was shut down on Might 24, 2025, after a brief interval of manufacturing, following persistent operational challenges, mechanical failures, and the lack to maintain steady business manufacturing after rehabilitation efforts.”

The affiliation warned that the shutdown has continued to constrain home refining capability, growing reliance on imported petroleum merchandise and intensifying strain on overseas alternate demand and pump costs.

It additionally expressed concern over the social affect of the closure, stating that “Most worrisome is the truth that the refinery shutdown has introduced hardship to members of the host communities.”

Past refinery challenges, PETROAN stated the downstream market was destabilised by intense value competitors in 2025. It said that “the downstream sector skilled intense value competitors between petroleum importers and native refiners,” including that “this value conflict led to frequent pump value changes ensuing to loses of billions of naira to our members, market uncertainty, and lowered margins for retail outlet operators.”

Whereas acknowledging short-term client aid, the affiliation stated “long-term sustainability and funding confidence had been negatively affected.”

PETROAN additionally reviewed the Naira-for-Crude coverage launched to help home refining, noting that “roughly 250,000 – 300,000 barrels per day of crude oil had been allotted to home refineries below this coverage.”

It stated the initiative “helped ease overseas alternate demand for petroleum importers and supported native refineries with regular crude feedstock,” however added that its effectiveness was restricted by operational points.

The affiliation noticed that “Implementation gaps, delays, and inconsistencies in crude allocation affected refinery operations, whereas pricing disputes and provide constraints additionally weakened the coverage’s affect.

On crude oil manufacturing, PETROAN famous a modest restoration in 2025, with output at “Roughly 1.3 – 1.5 million barrels per day, together with condensates,” however confused that manufacturing remained beneath Nigeria’s OPEC quota attributable to persistent oil theft and pipeline vandalism, growing old infrastructure and operational inefficiencies, and restricted upstream funding and funding constraints.

The affiliation stated “elevated crude manufacturing is important for sustaining home refining, bettering overseas alternate inflows, and guaranteeing downstream provide stability.”

Waiting for 2026, PETROAN stated improved product availability was anticipated however warned that affordability would rely on alternate charge stability, crude provide consistency, and regulatory stability.

The affiliation reiterated its suggestions, together with refinery privatisation, clear crude allocation, steady stakeholder engagement, and accountability in public investments, stating that these measures had been essential to stabilise the sector.

PETROAN concluded that Nigeria’s petroleum sector in 2025 mirrored cautious restoration amid persistent structural challenges, including that 2026 presents a chance to consolidate good points supplied insurance policies stay clear, inclusive, and investor-friendly.