The Nigerian National Petroleum Company Limited (NNPC) has once again delayed the commencement of fuel production at the Port Harcourt refinery, which is located in Rivers State. This marks yet another setback for the refinery as it has failed to begin operations after experiencing six previous postponements that have stretched into August 2024. Promises made by the Federal Ministry of Petroleum Resources and the NNPC regarding the refinery’s operational timeline have continually fallen through, leading to growing skepticism among Nigerians. In early August, the NNPC’s Chief Financial Officer, Umar Ajiya, assured that operations would begin in September 2024, with petroleum products ready for testing. However, as September came to an end, the NNPC did not provide any further updates regarding the expected commencement.
Efforts to reach the NNPC for clarification on the situation went unanswered, and the silence from the organization’s Chief Corporate Communications Officer, Olufemi Soneye, concerning recent inquiries heightened concerns over transparency and reliability. Meanwhile, Maire Tecnimont SpA, the contractor responsible for the rehabilitation project, indicated that details on the project’s progress would be available by or before October 2, 2024. This communication came as a response to a letter from Femi Falana, a Senior Advocate of Nigeria, seeking information on the contract’s completion timeline. The lack of timely information only adds to the uncertainty surrounding the refinery, as the NNPC has provided various timelines throughout the past year that have repeatedly failed.
Since the beginning of December 2023, the NNPC has given frequent assurances about the imminent operational status of the Port Harcourt refinery. In July, Mele Kyari, the Group Chief Executive Officer of NNPC, had boldly stated that the refinery would be operational by early August. Such claims echoed previous assurances he made in 2019 regarding the complete revival of the nation’s four refineries prior to the end of the former administration led by President Muhammadu Buhari. Nevertheless, as August concluded without the fulfillment of these promises, skepticism grew, signifying that the delays were not merely procedural but indicative of deeper systemic issues.
The refinery, expected to process 210,000 barrels per day, was reported to have reached mechanical completion by December last year, with plans to refine 60,000 barrels daily shortly after the Christmas season. However, early 2024 developments once again raised hopeful expectations when 475,000 barrels of crude oil were delivered to the facility by Shell Petroleum Development Company, suggesting that production was imminent. Still, the NNPC’s subsequent attempts to engage credible operations and maintenance firms to manage the refinery further highlighted operational challenges, which were echoed by Kyari’s claims in March that the refinery would start in two weeks.
April came and went without the promised operational commencement, leading independent petroleum marketers to speculate about production starting by the end of July. The NNPC, maintaining that only regulatory approvals were hindering the process, faced mounting disappointment from citizens who have grown frustrated over the continuous moribund state of the nation’s refineries. Nigeria’s excessive dependence on imported fuel, costing the government around N2 trillion monthly, underscores the urgency of resolving challenges at its domestic refineries. Industry mogul Aliko Dangote revealed that $4 billion had been expended by the Federal Government to revive the nation’s refining capacity, highlighting the heavy financial implications of these delays.
The Port Harcourt refinery, in operation since 1965, has faced prolonged downtimes and became a symbol of Nigeria’s wider struggles with managing national resources effectively. In 2021, the government secured a $1.5 billion loan for the facility’s renovation, igniting debates over accountability and efficacy. Former Vice President Atiku Abubakar criticized these interventions, suggesting that selling off the government-owned refineries to private entities would be a more effective solution. The ongoing discussions and harsh realities of this situation have intensified as current leaders, including Bola Tinubu, are scrutinized for their failure to act decisively on privatization.
Many Nigerians continue to hope for the timely start of operations at the Port Harcourt refinery, seeing it as a potential turning point that could reduce the nation’s dependency on imported fuel and subsequently lower petrol prices. The prospect of reviving domestic refining capabilities has taken on heightened significance amid the ongoing discussions about Nigeria’s economic resilience and its ability to manage energy production. The situation remains pressing as citizens await concrete actions and outcomes from the NNPC, with the country’s hopes resting on a refinery that has yet to deliver on many of its promised capabilities.
