Nigeria’s Refinery Crisis: State Plants Stall While Dangote Dominates (January 2026)
As of early January 2026 the story of Nigeria’s oil refineries is one of sharp contrasts. While the privately-owned Dangote Refinery has become the backbone of national fuel supply, the four state-owned refineries remain mired in technical reviews, shutdowns, and fresh calls for privatization.
1. The Dangote Giant: "Production is Ongoing
The biggest news in the sector this week is a firm rebuttal from Dangote Petroleum Refinery regarding rumors of a total shutdown.
The Reality:The refinery is currently undergoing "turnaround maintenance" on its Crude Distillation Unit (CDU)but officials have clarified that production hasn't stopped.
Supply Capacity: The plant is still pumping 40 million to 50 million litres of petrol (PMS) daily.
Expansion: In a surprise move, the refinery has begun adjusting units to boost capacity from 650,000 to 700,000 barrels per day aiming to solidify its position as the primary fuel source for West Africa.
Price War: Dangote recently slashed its ex-gantry price to ₦699 per litre putting massive pressure on importers who are struggling to match the price.
2. The State-Owned Refineries: A "Protracted Shutdown
The situation at the Port Harcourt, Warri, and Kaduna refineries—owned by the NNPC—is far more complicated.
Port Harcourt Refinery: Despite being declared "operational" in late 2024, the plant was shut down again on May 24, 2025 It has now been offline for over seven months. While it is still evacuating diesel (AGO) produced before the shutdown, it has yet to resume petrol production.
NNPC’s New Stance The new Group CEO, Bayo Ojulari recently revealed that the Port Harcourt plant was losing nearly $500 million a month before the shutdown due to technical inefficiencies. He has ruled out a "quick fix," opting for a deep "Technical and Commercial Review."
Warri & Kaduna: These plants remain under rehabilitation. The NNPC has set a new deadline of June 2026 to finalize partnerships with private technical operators who will take over the management of these facilities
3. The ₦11.35 Trillion Controversy
A major scandal is brewing as the Petroleum Products Retail Outlets Owners Association (PETROAN) has demanded a full federal probe into the ₦11.35 trillion reportedly spent on refinery rehabilitation over the last decade.
Marketers are questioning why, despite these astronomical "Turnaround Maintenance" (TAM) costs, Nigeria still relies heavily on a single private refinery and imports to meet daily demand
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