Paragraph 1: A Strategic Investment in Domestic Refining Capacity
The Nigerian Content Development and Monitoring Board (NCDMB) has solidified its commitment to bolstering local refining capacity by acquiring a 20% equity stake in the ambitious African Refinery Port Harcourt Limited project. This 100,000 barrels per day (bpd) refinery, situated within the existing Port Harcourt Refinery Complex, represents a significant stride towards reducing Nigeria’s dependence on imported refined petroleum products. The NCDMB’s investment, finalized through a share purchase agreement, positions the board as a key partner in this transformative venture, aligning with its mandate to foster Nigerian content development in the oil and gas sector. This strategic move underscores the NCDMB’s dedication to catalyzing economic growth and job creation within the country.
Paragraph 2: NCDMB’s Due Diligence and Governance Framework
The NCDMB’s investment in the African Refinery Port Harcourt Limited project was not undertaken lightly. The board subjected the proposal to rigorous technical, commercial, and regulatory reviews, ensuring alignment with the NCDMB’s Commercial Ventures Investment Policy. This meticulous evaluation process reflects the board’s commitment to responsible investment practices and its focus on maximizing the potential for success. Furthermore, the NCDMB has implemented a robust corporate governance framework to safeguard its investment and ensure the refinery project’s optimal performance, emphasizing transparency and accountability in its operations.
Paragraph 3: Leveraging Legal Mandates and Strategic Objectives
The NCDMB’s investment in the refinery project is firmly grounded in its legal mandate and strategic objectives. Section 70(h) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act empowers the NCDMB to support local contractors and Nigerian companies in developing their capabilities and capacities within the oil and gas industry. This investment serves as a practical demonstration of the NCDMB’s commitment to fulfilling this mandate. Moreover, the investment aligns with broader federal government policies aimed at stimulating economic growth, generating employment opportunities, and adding value to Nigeria’s abundant hydrocarbon resources.
Paragraph 4: The Investment Structure and Partnership Dynamics
The NCDMB’s 20% equity investment in the African Refinery Port Harcourt Limited project complements the 15% stake held by the Nigerian National Petroleum Company Limited (NNPC), which entered into a share subscription agreement in 2024. The remaining equity is held by the project’s promoters, the African Refinery Group. This partnership structure fosters collaboration between key stakeholders in the Nigerian oil and gas sector, leveraging their combined expertise and resources to drive the refinery project’s success. The African Refinery Group secured the project through a competitive bid in 2016, gaining the right to co-locate the refinery within the Port Harcourt Refinery Complex. Subsequent agreements solidified land usage rights and operational parameters for the 100,000 bpd refinery.
Paragraph 5: NCDMB’s Exit Strategy and Broader Refining Portfolio
The NCDMB’s investment in the African Refinery Port Harcourt Limited project incorporates a defined exit strategy. The board plans to divest from the refinery after seven years of commercial operation, allowing it to recycle its capital into other strategic investments that further advance Nigerian content development. This planned divestment highlights the NCDMB’s long-term vision and its commitment to maximizing the impact of its investments. The Port Harcourt refinery investment joins the NCDMB’s growing portfolio of investments in the refining sector, including stakes in modular refineries across several states, demonstrating its multifaceted approach to enhancing domestic refining capacity.
Paragraph 6: A Catalyst for Growth and Self-Sufficiency
The NCDMB’s investment in the African Refinery Port Harcourt Limited project signifies a pivotal step towards realizing Nigeria’s aspirations for self-sufficiency in refined petroleum products. By supporting the development of domestic refining capacity, the NCDMB is contributing to a more resilient and sustainable energy sector. This strategic investment is poised to generate significant economic benefits for Nigeria, creating jobs, stimulating local industries, and reducing the country’s reliance on imported petroleum products. The project exemplifies the NCDMB’s proactive role in driving positive change within the Nigerian oil and gas industry, fostering a future of greater energy security and economic prosperity.
