Port Harcourt refinery fails to commence operations despite multiple promises
By Ohuakanwa Chibuzo
The Port Harcourt Refining Company, managed by the Nigerian National Petroleum Company Limited (NNPC), has once again failed to commence operations after a series of missed deadlines. This marks the sixth postponement, leading to growing frustration among Nigerians who have been eagerly awaiting the refinery’s resumption.
The Federal Ministry of Petroleum Resources and the NNPC have repeatedly assured the public that the refinery would soon begin the sale of refined products. Since December 2023, the NNPC has provided various dates for the refinery’s operational start, none of which have been met.
In July, Mele Kyari, the Group Chief Executive Officer of NNPC, confidently stated that the refinery would be operational by early August. This follows a previous promise made by Kyari in 2019, when he assured that all of Nigeria’s four refineries would be functional before the end of former President Muhammadu Buhari’s administration.
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Kyari reiterated this promise during a recent appearance before the Senate, stating, “I can confirm to you, Mr. Chairman, that by the end of the year, this country will be a net exporter of petroleum products.” He also specified that the Port Harcourt refinery would begin operations by early August.
However, as mid-August approaches, the refinery remains inactive, raising concerns that this may be another unfulfilled promise by the NNPC. In response to inquiries on Tuesday, NNPC spokesperson Olufemi Soneye maintained that the company was “on course” but did not provide further clarification on whether the refinery would start operations within the month.
The Port Harcourt refinery, which has a capacity of 210,000 barrels per day, was reportedly nearing completion of its rehabilitation work in December. At the time, the NNPC announced that the facility would soon begin refining 60,000 barrels of crude oil daily. Despite these assurances, the refinery’s operational start has been delayed multiple times.
In March, Kyari stated that the refinery would commence operations in April, after a supply of 475,000 barrels of crude oil by the Shell Petroleum Development Company of Nigeria Limited. However, this deadline was also missed, with NNPC later citing delays in obtaining necessary regulatory approvals from international bodies.
The ongoing delays have led to widespread disappointment among Nigerians, who have been relying on imported fuel due to the country’s lack of refining capacity. The situation has resulted in significant financial strain, with the government reportedly spending up to N2 trillion monthly on fuel imports.
Former President Olusegun Obasanjo recently weighed in on the matter, recalling how corruption and poor management have plagued Nigeria’s refineries for years. He criticized the NNPC for its inability to run the refineries effectively and questioned the decision to reject a $750 million offer from Shell to manage the refineries during his administration.
The Port Harcourt refinery, located in the oil-rich Niger Delta region, has been operational since 1965 but has struggled to remain functional in recent years. In 2021, the Nigerian government secured a $1.5 billion loan for its renovation, a move that faced criticism from various quarters, including former Vice President Atiku Abubakar.
As the delays continue, the Senate has raised concerns over the $1.5 billion allocated for the refinery’s renovation. The upper chamber criticized the neglect of government businesses while private enterprises thrive, expressing frustration over the ongoing dysfunctionality of the nation’s refineries despite significant investments.
Nigerians remain hopeful that once operational, the Port Harcourt refinery will help reduce the country’s reliance on imported fuel and bring down the pump price of petrol. However, with each missed deadline, skepticism continues to grow.