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FG approves $1.48 billion for rehabilitation of Kaduna, Warri refineries


The Federal Executive Council (FEC) has approved the sum of $1.4 billion for the rehabilitation of Warri and Kaduna refineries at a cost of $1.48 billion.

The decision was taken at the weekly meeting of the council with the breakdown showing that $897 million is earmarked for the Warri refinery and $586 million for the Kaduna refinery.

This was disclosed by the Minister of State for Petroleum, Timipre Sylva, while addressing State House correspondents after the FEC meeting which was chaired by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, Abuja, according to NAN.

Sylva said that the rehabilitation contract which was awarded to Messers Saipem SPA and Saipem Contracting Limited at a total of $1.48 billion, will be carried out in 3 phases.

What the Minister of State for Petroleum is saying

The Minister pointed out that the rehabilitation exercise for the 2 refineries will run in 3 phases over a period of 77 months.

Sylva said, ‘’The FEC, today, approved the award of contract for the rehabilitation of Warri and Kaduna Refineries at the combined total sum of 1.5 billion dollars–  897. 67 million dollars for Warri Refinery and 586. 9 million dollars for Kaduna Refinery.

“The Executive Council also approved the acquisition of 20 per cent minority stakes by the NNPC in the Dangote Petroleum and Petro-Chemical Refineries in the sum of 2.76 billion dollars.

“The completion of the rehabilitation of the Warri and Kaduna Refineries is going to be in three phases. First phase is within 21 months; in 23 months, phase 2 will be completed and in 33 months, the full rehabilitation will be completed.

“Work has already commenced in Port Harcourt; already the first 15 per cent of the contract sum has been paid to the contractor and contractor has fully mobilized to site.”

He said that the council also discussed the need to give periodic updates on the projects adding that there will soon be an inspection of work in the Port Harcourt Refinery.

What you should know

  • It can be recalled that in March this year, the Federal Executive Council approved the sum of $1.5 billion for the immediate rehabilitation of the largest refining firm in the country, the Port Harcourt refinery following a memo from Sylva to the council which was subsequently approved.
  • The rehabilitation works on the Port Harcourt refinery, which will be executed by Tecnimont SPA, an Italian company, commenced in May 2021 and will be done in 3 phases of 18, 24 and 44 months.
  • Nigeria has 4 refineries in Kaduna, Warri and 2 in Port Harcourt. But all have struggled to function optimally as the country continues to import petroleum products.
  • The rehabilitation is expected to turn around the refineries and set them up to meet the country’s oil demands.
  • In June, Managing Director of NNPC, the national oil company, Mr Mele Kyari, said the rehabilitation of the refineries, in conjunction with private efforts such as the Dangote Refinery, will transform Nigeria into a hub of petroleum products and supply.


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