Concerns Over NNPC’s Decision to Retain Port Harcourt Refinery
Joseph Obele, the National Publicity Secretary of the Petroleum Products and Retail Owners Association of Nigeria, has expressed strong disagreement with the Nigerian National Petroleum Company Limited’s (NNPC) decision to retain ownership of the Port Harcourt refinery. Obele, speaking from his perspective as a stakeholder in the Port Harcourt community, voiced concerns about the NNPC’s capacity to efficiently manage the refinery, citing the company’s history of corruption and favoritism. He contrasted this with the perceived benefits of private ownership, highlighting the tendency of private firms to prioritize the interests of host communities, as exemplified by Indorama Petrochemical. Obele believes that the NNPC’s continued control of the refinery will perpetuate the cycle of fuel scarcity, price hikes, and economic hardship that has plagued Nigeria for years.
NNPC’s Track Record and the Case for Privatization
Obele’s concerns stem from the NNPC’s documented history of mismanagement and inefficiency in operating government-owned refineries. He argued that this track record, marked by corruption, neglect, and a consistent failure to meet national fuel demands, necessitates a change in management approach. Privatization, he believes, offers a viable solution, potentially ushering in a new era of efficiency, productivity, and economic growth for the local community. Obele outlined numerous potential benefits of privatization, including increased investment, technology transfer, job creation, reduced corruption, improved accountability and transparency, enhanced global competitiveness, and optimized resource utilization.
Community Support for Privatization and Call for Presidential Intervention
The Port Harcourt community, according to Obele, stands ready to embrace a private entity taking over the refinery. He assured potential investors of a welcoming environment and a collaborative working relationship, emphasizing the shared interest in the refinery’s success, which would ultimately benefit the community and the nation as a whole. Obele’s advocacy for privatization extends to a direct appeal to President Bola Tinubu. He urged the president to intervene and direct the privatization of the Port Harcourt refinery, emphasizing the potential for increased transparency, efficiency, and economic growth under private management.
NNPC’s Justification for Retaining the Refinery
Despite Obele’s concerns and the community’s willingness to embrace privatization, the NNPC has reaffirmed its commitment to retaining and rehabilitating the Port Harcourt refinery. The company’s Group Chief Executive Officer, Bayo Ojulari, announced this decision at a company-wide meeting, stating that the ongoing technical and financial reviews of all three refineries – Port Harcourt, Kaduna, and Warri – supported this position. Ojulari reportedly criticized a previous decision to operate the Port Harcourt refinery before the completion of its rehabilitation, deeming it “ill-informed and sub-commercial.” He further indicated that while progress is being made on the rehabilitation of all three refineries, the Port Harcourt refinery, in particular, requires advanced technical partnerships for its completion and upgrade, making a sale unlikely due to potential value erosion.
Conflicting Statements and Ongoing Uncertainty
The NNPC’s recent announcement appears to contradict earlier statements made by Ojulari at the 2025 OPEC Seminar in Vienna, where he suggested that all options, including a sale, were still on the table. This inconsistency has created confusion and fueled speculation about the true intentions of the NNPC regarding the future of the refinery. Adding further complexity to the situation, the Port Harcourt refinery has remained closed for two months following a scheduled one-month maintenance period, raising questions about its operational status and the progress of the purported rehabilitation efforts.
External Perspectives on Refinery Viability
Aliko Dangote, President of the Dangote Group, has offered a pessimistic view on the viability of Nigeria’s existing refineries. Having invested heavily in his own refinery project, Dangote expressed skepticism about the government’s ability to revive the ailing refineries, suggesting that they may never be operational again after absorbing billions of dollars in investment. This external assessment further underscores the challenges facing the Nigerian refining sector and raises questions about the wisdom of the NNPC’s decision to retain and rehabilitate the Port Harcourt refinery in light of its past performance and the significant financial resources required.
