PETROAN Demands Guaranteed Crude Supply For Port Harcourt, Warri Refineries
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for guaranteed crude oil supply to the Port Harcourt and Warri refineries ahead of their proposed restart, warning that rehabilitation alone will not guarantee sustainable operations.
The association said the Federal Government and the Nigerian National Petroleum Company Limited (NNPC Ltd) must ensure that the refineries have reliable access to crude at commercially viable prices if the facilities are to operate efficiently after their revival.
PETROAN National President, Dr Billy Gillis-Harry, made the position known while reacting to renewed commitments by President Bola Ahmed Tinubu to revive Nigeria’s refineries and assess their performance based on commercial results rather than merely their ability to commence production.
Gillis-Harry said the success of the refineries should be measured through indicators such as throughput, availability, operating margins and return on capital.
He urged NNPC Ltd to translate its refinery rehabilitation plans into binding commercial agreements containing clear completion timelines, throughput guarantees and penalties for non-performance.
The call comes amid concerns over Nigeria’s ability to meet its Domestic Crude Supply Obligation (DCSO) to local refineries.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that although 61.9 million barrels of crude were allocated to domestic refineries in the first quarter of 2026, only 28.5 million barrels were actually delivered.
PETROAN said the significant shortfall underscored the need for stronger enforcement of the DCSO provisions under the Petroleum Industry Act (PIA), transparent crude pricing and reliable infrastructure for crude evacuation.
According to the association, failure to address the crude supply challenge could result in Nigeria investing heavily in refinery rehabilitation without achieving sustained production.
The proposed return of the Port Harcourt and Warri refineries would restore about 335,000 barrels per day (bpd) of refining capacity to the domestic market.
The Port Harcourt refinery has a combined capacity of about 210,000 bpd, while the Warri refinery has a capacity of approximately 125,000 bpd.
PETROAN said the importance of the two facilities extends beyond reducing petroleum product imports, noting that their operation would diversify Nigeria’s refining base, promote competition, strengthen supply security and provide alternative sources of products when other domestic refineries undergo maintenance or experience disruptions.
The association also noted that increased domestic refining had already contributed to a sharp decline in petrol imports.
It said petrol imports fell from N2.271 trillion in the first quarter of 2025 to N87.4 billion in the corresponding period of 2026, while domestic refineries accounted for about 76.7 per cent of national petrol supply during the period.
PETROAN, however, expressed concern over Nigeria’s history of refinery rehabilitation, saying the challenges had not been limited to funding but also involved governance, technical management, accountability and commercial incentives.
The association said about $4.15 billion was allocated to interventions at the Port Harcourt, Warri and Kaduna refineries between 1993 and 2019, while the Federal Executive Council approved another $3.14 billion package in 2021.
The Port Harcourt refinery resumed operations briefly in late 2024 but was shut down again on May 24, 2025, for maintenance initially scheduled to last 30 days.
Against this background, PETROAN called for the proposed technical equity partnership between NNPC Ltd and Chinese companies to be converted from a non-binding memorandum of understanding into a firm commercial agreement.
It said such an agreement should include clear completion deadlines, throughput guarantees, minimum availability thresholds, liquidated damages for non-performance, disclosure of equity and capital commitments, independent technical due diligence and guaranteed crude supply.
The association further called for genuine transfer of technical and operational expertise to Nigerian engineers, alongside improvements in infrastructure for the evacuation and distribution of refined petroleum products.
PETROAN maintained that ensuring reliable feedstock and strong commercial accountability would be critical to preventing the refineries from becoming underutilised assets after their rehabilitation.
