The Port Harcourt Refining Company, under the management of the Nigerian National Petroleum Company Limited (NNPC) in Rivers State, has once more postponed its operations, marking the sixth delay. According to The PUNCH, this repeated failure to meet promises made by the Federal Ministry of Petroleum Resources and NNPC has frustrated Nigerians.
Since December 2023, the NNPC has consistently shifted the timeline for the refinery’s start-up, providing various assurances to the public. In July, NNPC’s Group Chief Executive Officer, Mele Kyari, promised that the refinery would become operational in early August. However, Kyari had previously committed to having all the country’s refineries fully functional by the end of former President Muhammadu Buhari’s tenure.
In a recent appearance before the Senate, Kyari confidently declared, “By the end of the year, this country will be a net exporter of petroleum products.” He added that the Port Harcourt refinery would be up and running by early August, although refineries in Warri and Kaduna would not be ready until December. But with August already halfway through, the Port Harcourt facility remains idle, raising concerns about yet another unfulfilled promise.
When questioned by The PUNCH on Tuesday, NNPC spokesperson Olufemi Soneye stated that the company was still “on course,” despite missing the early August deadline. However, Soneye did not elaborate when asked whether operations would begin before the month’s end.
The refinery, with a capacity of 210,000 barrels per day, was reported to have reached “mechanical completion” in December. NNPC had announced that it would start refining 60,000 barrels of crude oil daily after last year’s Christmas break. In January, Kyari mentioned that testing was underway, and the refinery would be ready by the end of the month.
In February, the Shell Petroleum Development Company of Nigeria Limited delivered 475,000 barrels of crude oil to the refinery, fueling expectations that production would soon begin. Despite this, the NNPC has not disclosed whether it secured bids from reputable companies to manage the refinery, as promised in January.
By mid-March, Kyari assured the public that the Port Harcourt refinery would start operations within two weeks, by April. He reiterated his commitment to fulfilling promises related to refinery rehabilitation during a Senate Ad-hoc Committee investigation into various turnaround maintenance projects.
When April came and went, independent petroleum marketers predicted that production would begin by the end of July. However, NNPC’s Chief Corporate Communications Officer, Soneye, clarified that international regulatory approvals were the only remaining obstacle preventing the refinery from commencing operations.
“We have completed the mechanical work and everything else is ready. There is crude oil, and the pipes are functioning. We are just waiting for regulatory approvals, especially those related to nuclear materials that need authorization from international bodies. Once we receive these, we will begin operations,” Soneye explained in May. Despite this assurance, Nigerians remain frustrated by the ongoing delays, especially given the country’s heavy reliance on imported fuel, which costs up to N2 trillion monthly.
Aliko Dangote, President of the Dangote Group, previously revealed that the government had spent $4 billion in attempts to revive the country’s refineries. Former President Olusegun Obasanjo also criticized the situation, recalling how Shell refused to manage the refineries during his tenure due to corruption and mismanagement.
Obasanjo further noted that although $750 million had been paid by some Nigerians to take over the refineries, his successor reversed the decision. Obasanjo warned that the refineries might eventually be sold for less than $200 million as scrap, given their current condition. He blamed the NNPC for continuing the corruption that hindered the refineries’ rehabilitation.
During a visit by House of Representatives members, Obasanjo pointed out that the lawmakers were investigating the $1.5 billion spent by NNPC on the Port Harcourt refinery. Despite the investments, the refinery, located in Nigeria’s oil-rich Niger Delta region, remains inoperative. The Alesa Eleme refinery complex, situated 25 kilometers east of Port Harcourt, has been mostly dormant for years.
In March 2021, the Nigerian government secured a $1.5 billion loan for the renovation and modernization of the refinery, a move that was heavily criticized by former Vice President Atiku Abubakar, who advocated for the sale of all government-owned refineries. Abubakar argued that the refinery should be privatized, criticizing former President Buhari and current President Bola Tinubu for ignoring his advice.
NNPC recently announced an agreement with the African Refinery Port Harcourt Limited (ARPHL), allowing ARPHL to acquire a 15 percent equity stake in the Port Harcourt Refining Company. This deal is expected to increase the refinery’s capacity from 210,000 barrels per day to 310,000 barrels per day.
Meanwhile, the Senate has questioned the $1.5 billion approved in 2021 for the refinery’s renovation. The Senate Leader and Chairman of the Senate Ad-hoc Committee investigating alleged economic sabotage in the Nigerian Petroleum Industry, Opeyemi Bamidele, expressed concerns over the non-functioning refineries despite substantial investments in turnaround maintenance.
Nigerians continue to hope that the refinery will eventually eliminate the need for fuel imports and reduce the pump price of petrol.
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