A recent financial review has uncovered that Nigeria’s three major state-owned refineries; Port Harcourt Refinery Company Limited, Kaduna Refinery and Petrochemical Company Limited, and Warri Refinery and Petrochemical Company Limited, now collectively owe the Nigerian National Petroleum Company Limited (NNPCL) a staggering N30.2 trillion, despite being shut down for months and producing no refined products.
According to the NNPCL’s audited statement for the year ended December 2024, Port Harcourt Refinery leads the indebtedness with N4.2 trillion, closely followed by Kaduna at N2.3 trillion and Warri at N2.055 trillion. The liabilities accrue from “funding operations” and “back charge of expenses” for refineries that are out of operation, raising critical transparency and accountability questions about Nigeria’s energy sector management.
The debt burden extends well beyond refineries to NNPC subsidiaries and joint ventures. NNPCL Gas Infrastructure alone owes N847 billion, while NNPC Energy Services has a liability of N264 billion. Other subsidiaries, including NNPC Shipping and Logistics (N99 billion), Nidas Shipping Service Agency (N1.2 billion), and NNPC Engineering and Technical (N50.8 billion), add substantial amounts to the overall debt. Hyson Nigeria Limited and NNPCL Gas Marketing Limited also owe N102 million and N54.7 billion, respectively. The Nigerian Pipelines and Storage Company is reported to owe N468.7 billion.
The review highlights several costly ventures, with Maiduguri Emergency Power Plant, Kano IPP Limited, and Gwagalada Power Limited owing N179.3 billion, N1.4 billion, and N326 billion, respectively. Other outstanding debts include NNPC Trading (SA) at N19.1 trillion, NNPC LNG Limited at N28.2 billion, NNPC Medical Services at N106.7 billion, and National Petroleum Telecommunications at N26.3 billion.
Some joint ventures show little or no revenue. Anoh Gas, Nikorma Transport Limited, and WAGL Energy (Nig) failed to record revenue yet incurred expenses—Anoh Gas reportedly spent N2.1 billion on “other administrative expenses” while WAGL Energy (Nig) spent N65 million on similar items. Only WAGL Energy (BVI) posted revenue, at N520.3 billion, with costs of sale reaching N500.3 billion.
These revelations come as Nigeria’s refineries remain closed for maintenance and rehabilitation, highlighting persistent inefficiencies in operations, mounting debts, and a need for strategic overhaul in the nation’s petroleum sector. As accountability concerns grow, stakeholders and industry analysts warn that sustainable solutions must address not only physical repairs but also fiscal discipline and effective governance to avoid further drain on public resources.
