The prolonged shutdown of the Port Harcourt Refining Company has continued to attract fresh scrutiny after new regulatory disclosures revealed that the facility is still evacuating previously-produced diesel into the domestic market.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Port Harcourt refinery supplies diesel at an average rate of 349,000 litres per day, despite being officially shut since May 24, 2025.
In its latest operational update, the NMDPRA clarified that there are no active production activities at the refinery.
Instead, the ongoing evacuations reflect the clearance of automotive gas oil stockpiles produced shortly before the facility went offline for maintenance.
The disclosure reinforces earlier industry concerns about Nigeria’s refining downtime and its implications for product supply, cost efficiency, and fiscal exposure.
The regulator noted that the Port Harcourt refinery supplies diesel into the market under a structured evacuation schedule, explaining that the product inventory was generated while the plant was still operational ahead of the shutdown.
The update further indicated that the refinery, now entering its seventh consecutive month of inactivity, has yet to resume fuel production, contrary to earlier expectations of a shorter maintenance window.
Industry records show that the NNPC had initially communicated a one-month turnaround maintenance plan when the facility was halted in May.
However, more than half a year later, the refinery’s full restart remains pending, raising questions among industry operators, marketers, and policy analysts about rehabilitation progress and operational economics.
Rehabilitation gains stalled as Port Harcourt refinery supplies diesel from old stock
The current development marks a notable reversal from late 2024, when the plant was publicly declared operational following years of dormancy and rehabilitation spending.
At the time, the NNPC leadership announced that the refurbished Port Harcourt complex had restarted operations at around 70 per cent of its installed capacity, with output projections covering diesel, low-pour fuel oil, kerosene, straight-run gasoline, and premium motor spirit.
During that phase, diesel was expected to rank among the refinery’s highest-yield products, with projected daily production capacity of approximately 1.5 million litres.
However, the fresh disclosures that the Port Harcourt refinery supplies diesel from pre-shutdown stock, rather than active processing, underline the operational setbacks that followed the renewed shutdown.
The plant’s halt also mirrors developments at the Warri Refining and Petrochemical Company, which briefly resumed production before being shut again months later.
These repeated stoppages have rekindled industry-wide debate on the financial viability of state-owned refineries, especially as rehabilitation spending and downtime continue to weigh on national finances.
Loss-making operations triggered shutdown review
Upon assumption of office, the new Group Chief Executive of NNPC, Bayo Ojulari, revealed that an internal performance review showed that the refinery was running at a steep financial loss before the suspension of operations.
He disclosed that operational inefficiencies meant that despite processing about 50,000 barrels of crude per day, the output recovered was less than 40 per cent of expected refined yields.
Ojulari stated that the decision to suspend production and allow a comprehensive technical review was necessary to halt an estimated monthly loss of between $300 million and $500 million.
According to him, the current audit and commercial assessment are designed to chart a sustainable path forward, even as the Port Harcourt refinery supplies diesel from stored volumes to clear inventory and stabilise supply logistics.
He reiterated that the objective is to reposition the national refineries into self-sustaining, revenue-generating assets, capable of meeting Nigeria’s fuel demand while aligning operations with global standards.
Calls for privatisation intensify as Port Harcourt refinery supplies diesel during downtime
The continued evacuation of old product stock while the facility remains idle has renewed advocacy from petroleum marketers and downstream operators for a decisive reform of Nigeria’s refining assets.
The Petroleum Products Retail Outlets Owners Association of Nigeria recently urged the Federal Government to accelerate privatisation of the four state-owned refineries by the first quarter of 2026.
According to the association, private-sector participation would help eliminate recurring fiscal burdens, attract capital and technical expertise, improve refining performance, and reduce dependence on imports.
It argued that the ongoing situation — where the Port Harcourt refinery supplies diesel without active production — reinforces the structural inefficiencies that have long constrained the sector.
However, Ojulari has maintained that the NNPC is prioritising a turnaround strategy over outright divestment.
He expressed confidence that the ongoing technical and commercial review process will support a model that delivers sustainable operations without transferring public assets prematurely.
Broader implications for fuel supply security
Analysts observe that the refinery’s continued evacuation of diesel stock demonstrates the role of strategic inventory management in stabilising downstream supply.
Nonetheless, they caution that reliance on pre-production stock while the Port Harcourt refinery supplies diesel highlights the vulnerability of Nigeria’s refining ecosystem to prolonged shutdowns.
With rising domestic demand, foreign exchange exposure on imports, and price volatility in the global oil market, stakeholders insist that restoring refinery capacity remains critical to achieving long-term energy security.
For now, the national conversation continues to revolve around three key issues — the pace of rehabilitation, financial sustainability of operations, and whether reform should ultimately tilt toward revamp, partnership, or privatisation.
Until a final direction is reached, the Port Harcourt refinery supplies diesel from earlier production cycles, serving as a temporary stop-gap in a refining landscape still waiting for decisive stability.
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