The Port Harcourt Refining Company (PHRC), a critical component of Nigeria’s fuel production infrastructure, has remained offline for over a month due to extended maintenance, raising concerns about the nation’s fuel supply and the management of the refinery. Initially announced in late May 2024 by then-NNPC spokesperson Olufemi Soneye, the maintenance period has significantly exceeded the projected timeframe without any official updates from the now spokesperson-less NNPC. This lack of transparency fuels anxieties among petroleum marketers and the public, especially considering the refinery’s history of operational inconsistencies and the ongoing investigation by the Economic and Financial Crimes Commission (EFCC) into the substantial funds allocated for its turnaround maintenance.
The EFCC’s investigation into alleged financial improprieties surrounding the refinery’s rehabilitation adds another layer of complexity to the situation. The probe encompasses the disbursement of significant sums allocated for the turnaround maintenance of the Port Harcourt, Kaduna, and Warri refineries. The arrest of former NNPC Chief Financial Officer, Umar Isa, and the investigation of other key officials, including former managing directors of the refineries, signals the gravity of the allegations. These investigations focus on potential abuse of office, corruption, diversion of public funds, and kickbacks from contractors, raising questions about the effectiveness and transparency of the refinery rehabilitation projects.
The prolonged shutdown comes merely months after the much-heralded reopening of the PHRC in November 2024 by the former Group Chief Executive Officer of NNPC, Mele Kyari. At the time, the refinery was touted as operating at 70% capacity, with projected daily outputs of various petroleum products, including gasoline, diesel, and kerosene, promising to significantly contribute to the Nigerian fuel market. However, this renewed operational phase proved short-lived, with the refinery shutting down again for maintenance within six months. This pattern of intermittent operation raises concerns about the sustainability of the refinery’s performance and the efficacy of the previous rehabilitation efforts.
Adding to the PHRC’s woes is the similar predicament of the Warri refinery, also reopened by Kyari in December 2024 only to be shut down a month later and remain inactive. The repeated shutdowns of both refineries, following substantial investments in their rehabilitation, have sparked calls for privatization from the Organized Private Sector and oil marketers. These stakeholders argue that private management could potentially bring more efficient and sustainable operations to these critical national assets. The NNPC’s April 2025 monthly performance report’s ambiguous statement that the status of the Port Harcourt, Warri, and Kaduna refineries is “currently under review” further contributes to the uncertainty surrounding the future of these facilities.
The concerns surrounding the PHRC’s operational status are further exacerbated by recent protests from fuel marketers over escalating diesel prices at the refinery. Independent Petroleum Marketers Association of Nigeria (IPMAN) members claim the refinery has arbitrarily increased diesel prices within a single week, demanding that earlier payments be topped up to reflect the new price, despite the refinery holding old stocks at the previous lower price. This situation reflects not only the volatile nature of fuel pricing in Nigeria but also potential internal inconsistencies within the refinery’s management practices. The marketers’ demand for either loading their trucks at the agreed-upon price or a full refund underscores the tension and distrust between the refinery and its stakeholders.
The ongoing maintenance shutdown of the PHRC, coupled with the EFCC investigations, the previous short-lived operational period, and the recent fuel pricing protests, paints a concerning picture of the refinery’s management and its contribution to Nigeria’s fuel security. The lack of transparency from the NNPC, the history of operational inconsistencies, and the financial questions surrounding the refinery’s rehabilitation raise serious doubts about its ability to fulfill its intended role. The situation calls for urgent and decisive action to address the underlying issues and ensure the refinery’s long-term viability, whether through improved management practices or eventual privatization. The future of the PHRC, and indeed Nigeria’s fuel security, hinges on resolving these complex challenges.
