The planned restart of Nigeria’s Port Harcourt and Warri refineries could face a major challenge beyond rehabilitation and technical completion, as the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called for guaranteed crude oil supply to ensure the facilities operate sustainably.
PETROAN made the demand in response to President Bola Ahmed Tinubu’s renewed commitment to reviving Nigeria’s refineries, with an emphasis on measuring their success by commercial performance rather than simply confirming that they are operational.
The association’s National President, Dr. Billy Gillis-Harry, said attention should shift from commissioning ceremonies to measurable indicators such as throughput, plant availability, operating margins and return on capital.
PETROAN also urged the Nigerian National Petroleum Company Limited (NNPC Ltd) to translate its refinery revival plans into binding agreements containing clear completion timelines, throughput guarantees and enforceable penalties for non-performance.
The demand comes amid persistent challenges in converting Nigeria’s Domestic Crude Supply Obligation (DCSO) into actual crude deliveries to local refineries.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that 61.9 million barrels of crude were allocated to domestic refineries in the first quarter of 2026, but only 28.5 million barrels were actually delivered.
The shortfall has raised concerns over Nigeria’s ability to provide consistent crude supplies to the growing number of domestic refineries at commercially viable prices.
PETROAN therefore called for strict implementation of the DCSO under the Petroleum Industry Act (PIA), alongside transparent crude pricing mechanisms and reliable evacuation infrastructure.
The association warned that without guaranteed feedstock, the rehabilitation of the refineries could result in expensive assets that are unable to sustain commercial production.
The potential return of the Port Harcourt and Warri refineries would restore about 335,000 barrels per day (bpd) of refining capacity to Nigeria’s downstream market, making reliable crude supply critical to the success of their operations.
