Prominent human rights lawyer, Femi Falana, SAN, has called on Mele Kyari, the Managing Director of the Nigerian National Petroleum Company Limited (NNPCL), to provide an explanation to Nigerians regarding the utilization of $2.9 billion earmarked for rehabilitating the nation’s three refineries.
Falana specifically raised concerns about the Port Harcourt refinery, which processes only 60,000 barrels of crude oil daily, far below its 150,000-barrel capacity. He also questioned the neglect of the Warri and Kaduna refineries. The renowned lawyer made these remarks on Wednesday during the inauguration of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) Tower in Lagos.
The seven-story NUPENG building, located on Jibowu Street, Lagos, was commissioned by President Bola Tinubu. The edifice, described as the tallest labour union office building in Nigeria, is powered by multiple sources, including the national grid, a generating plant, and solar panels.
Falana’s remarks were made in the presence of key stakeholders in the oil and gas sector, including Joe Ajaero, President of the Nigeria Labour Congress (NLC); Festus Osifo, President of the Trade Union Congress (TUC); and Williams Akporeha, NUPENG President. “I challenge NUPENG and PENGASSAN to inform Nigerians about the actual state of the refineries. Only 60,000 barrels per day are being processed, while the NNPCL remains silent on the remaining 150,000 bpd capacity and the Warri and Kaduna refineries,” Falana stated.
He further accused the NNPCL of failing to account for the $2.9 billion allocated for refinery repairs. “NNPCL has yet to explain why the funds meant for these refineries have been diverted,” he added.
Responding to these allegations, NNPCL’s Managing Director assured the public that the Port Harcourt refinery was operational. However, reports indicate that the refinery’s non-petroleum units, such as the Crude Distillation Unit (CDU), are the only ones functioning.
Chronicles Reporters recently revealed that the Port Harcourt refinery has ceased full operations, with only the CDU running. This unit produces naphtha, kerosene, and diesel but lacks the capacity to generate Premium Motor Spirit (PMS), commonly known as petrol. Sources at the refinery disclosed that the old section is blending Crack C5 with naphtha to produce gasoline, which has raised concerns about its impact on vehicles.
NNPCL reportedly adopted this blending approach because the secondary units required for full PMS production are yet to be commissioned. Industry insiders clarified that while blending is a standard practice, it should involve reformates from secondary processing units. These units, critical for gasoline production, remain non-operational.
A source provided an update, stating, “The CDU is still running but produces limited quantities of naphtha, diesel, and kerosene. These products cannot meet public demand, even if the plant operates at 100% capacity. The full processing plant with a 150,000 bpd capacity is projected to commence operations in 2026, provided funding is available. The project has already exceeded $2 billion.”
The NNPCL has confirmed that only the old Port Harcourt refinery is functioning and that it is not producing PMS but blended gasoline. In a statement, Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, stated that the refinery operates at 70% capacity, producing Straight-Run Gasoline (naphtha), which is blended into 1.4 million liters of PMS daily.
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