The Nigerian National Petroleum Company Limited (NNPCL) has officially declared that the Warri Refining & Petrochemicals Company (WRPC) in Warri, Delta State, has commenced operations, marking a significant milestone in the country’s efforts to revive its moribund refineries.
The announcement was made by Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPCL, during a recent tour of the facility on Monday, 30th December 2024 which was attended by several key industry stakeholders, including Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Kyari addressed the tour group by emphasizing the remarkable progress made at the plant, while acknowledging that the repairs on the refinery are ongoing.
“This plant is running, and we have not completed 100%, we are steaming the other part of the plant as we progress. Currently, this plant is running. There are many people who don’t think this is real.
“People don’t believe that real things can happen in our country. We believe that this is pride for our country. I just want you to know that everything you see is real.”
Mele Kyari, the Group Chief Executive Officer (GCEO) of NNPCL
The WRPC, located in the Ekpan, Uwvie, and Ubeji areas of Warri, has an operational capacity of 125,000 barrels of crude oil per day. It is one of Nigeria’s four key refineries, alongside those in Port Harcourt and Kaduna, all of which have been plagued by underperformance, inefficiencies, and poor maintenance over the years.
The facility has been primarily tasked with serving markets in Nigeria’s southern and southwestern regions, which have historically been underserved by refineries in other parts of the country.
The plant produces 13,000 metric tonnes per annum (MTA) of polypropylene and 18,000 MTA of carbon black, critical products for various industries.
Despite the plant’s long-standing presence, the refinery’s operations have been sporadic, with periods of inactivity that have hindered its effectiveness in meeting domestic demand for refined petroleum products.
Operationalization of WRPC
NNPCL spokesperson Olufemi Soneye confirmed that the mechanical completion of the WRPC was initially set for the first quarter of 2024, but with operations already beginning, there are signs that the plant is taking strides toward full functionality.
The ongoing repairs are expected to enhance the refinery’s capacity over time, particularly as Nigeria continues to strive for energy security and a reduction in the country’s reliance on imported petroleum products.
The operationalization of WRPC comes at a critical time for Nigeria, a country that has long struggled with oil production and refining inefficiencies.
Despite being one of the largest oil producers in Africa, Nigeria has been heavily reliant on the importation of refined petroleum products due to the dysfunctionality of its state-owned refineries. This reliance on imports has strained the country’s foreign exchange reserves, contributing to economic instability and a sharp rise in fuel prices.
In an effort to address these chronic issues, the Nigerian government has also set in motion plans for the full privatization of its state-owned refineries, including the WRPC, as part of broader energy sector reforms.
Early in November 2024, Sunday Dare, the Special Adviser to the President on Media and Publicity, announced on his official X (formerly Twitter) handle that “the administration is committed to selling off the refineries to private investors. The privatization initiative is part of the drive to tackle the inefficiencies that have plagued the country’s refining sector for decades.”
The proposed privatization is seen as a fundamental shift in Nigeria’s energy policy. It is hoped that bringing in private-sector expertise and management will inject the necessary capital and innovation to overhaul the refineries.
The NNPCL, which has managed these refineries for years, has faced challenges in maintaining them, owing to years of underinvestment and administrative inefficiencies. The WRPC, like the other refineries, had been intermittently shut down for maintenance, and its operations had dwindled to a fraction of its full capacity in recent years.
The privatization of the WRPC and its sister refineries is expected to address these long-standing challenges. For many experts, this is seen as the only viable solution to Nigeria’s deep-rooted refinery issues.
Over the years, billions of dollars have been spent on rehabilitating and upgrading these refineries, but results have often been underwhelming. This has led to a situation where Nigeria, despite being one of the top oil exporters in the world, remains a net importer of refined petroleum products.
Privatizing the refineries could enable private companies to invest in modernizing the facilities, improving operational efficiency, and increasing output.
The future of Nigeria’s refining capacity hinges on the success of these reforms, and whether the Warri refinery and its counterparts can continue to meet both local demand and global expectations.
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