T he Port Harcourt Refining Company, managed by the Nigerian National Petroleum Company Limited (NNPC), has once again failed to start operations as promised, following multiple postponements, The PUNCH reports.
Since December 2023, NNPC has repeatedly assured Nigerians that the refinery would soon begin processing and selling refined products. Despite these assurances, the refinery's operational start date has been pushed back several times. The latest promise from NNPC Group Chief Executive Officer Mele Kyari in July was that operations would commence in early August.
Kyari had previously claimed in 2019 that all of Nigeria's refineries would be operational before the end of former President Muhammadu Buhari’s tenure. He reiterated his commitment before the Senate in July, stating that while the Kaduna refinery would not be operational until December, the Port Harcourt refinery would start production in early August.
As August progresses, the refinery remains inactive, prompting concerns about the reliability of NNPC’s promises. When queried about the delay, NNPC spokesperson Olufemi Soneye stated only, “We are on course,” without providing further details.
The refinery, with a capacity of 210,000 barrels per day, was reported to have completed mechanical rehabilitation by December. Despite this, operations have not started as expected. In January, Kyari had indicated that the refinery would be ready by the end of the month, and Shell Petroleum Development Company had supplied crude oil in anticipation of the refinery’s startup.
In March, Kyari projected a start in April, which also passed without the refinery commencing operations. By July, independent petroleum marketers had anticipated a July start, which did not materialize.
Soneye later attributed the delay to the need for regulatory approvals from international bodies, specifically concerning materials used in the refinery. He explained that while all physical work is complete, operations are contingent on these approvals.
Public dissatisfaction with the nation’s refineries is high, with Nigeria relying on imported fuel and spending up to N2 trillion monthly. Former President Olusegun Obasanjo criticized the management of the refineries, recounting his failed attempts to involve Shell in their operation and blaming corruption for the ongoing issues.
The Nigerian government acquired a $1.5 billion loan in March 2021 for the refinery's renovation, which was met with criticism from former Vice President Atiku Abubakar. Atiku had advocated for the sale of government refineries rather than their renovation.
Additionally, NNPC announced an agreement with African Refinery Port Harcourt Limited to increase the refinery’s capacity from 210,000 to 310,000 barrels per day. However, this development has yet to translate into operational success.
The continuous delays and unfulfilled promises regarding the Port Harcourt Refining Company highlight ongoing challenges in Nigeria’s oil sector and the need for effective management and accountability.
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