Nigeria’s quest for self-sufficiency in petroleum refining has long been marred by promises and setbacks, particularly concerning the Port Harcourt Refinery. Recently, the Nigerian National Petroleum Company Limited (NNPCL) reiterated its commitment to revamping the Port Harcourt Refinery, yet the timeline for completion remains shadowed by delays.
Following multiple missed deadlines, the NNPCL provided some insight Friday when Olufemi Soneye, the Chief Corporate Communications Officer, spoke on the project’s progress during an interview. Despite claiming the mechanical completion of the refinery revamp was achieved months ago, Soneye admitted unexpected challenges have hindered full operational status.
“You may recall,” Soneye noted, “mechanical completion of the PHRC revamp was successfully achieved several months ago, marking a significant milestone in the project. Following this, we began the commissioning of various equipment and process units.”
While progress was initially touted, Soneye acknowledged unforeseen hurdles typical of brownfield projects have arisen. The NNPCL has faced difficulties associated with the complexity of modernizing existing facilities, which included “risks and challenges” during rehabilitation.
Despite these obstacles, Soneye expressed optimism, declaring, “Work is being carried out around the clock to guarantee the successful completion of this project.” Although he refrained from committing to any specific completion date, he hinted progress was underway by stating, “Shortly,” when asked about when the refinery might commence operations.
This lack of clarity follows the NNPCL's previous failures to deliver, with the company failing to meet commitments made under former president Muhammadu Buhari’s administration, which promised operational readiness by May 2023.
The Port Harcourt refinery, owned by the Federal Government and managed by the NNPCL, has seen more than its share of turmoil. Originally operational since 1965, the facility had fallen short of expectations due to neglect and mismanagement, remaining largely offline for years.
Equally disconcerting for Nigerian citizens is the implication these delays have on fuel prices and availability. Recent data from the National Bureau of Statistics (NBS) indicated significant increases in petrol prices, with October prices soaring to N1,184.83 per litre, nearly 88% higher than the previous year. The state of ebony recorded the highest rates at N1,292.86, raising concerns about economic stability amid growing inflation.
Given Nigeria's vast oil reserves, there is abundant hope among the populace and government officials alike for cheaper petrol. The notion is simple: local refineries, if fully operational, could eliminate the burden of imported fuel. Yet, with each delay, aspirations begin to fade, as do the trust of citizens who have been repeatedly let down by the NNPC’s promises.
The Port Harcourt Refinery relaunch forms part of Nigeria’s larger strategy to revitalize its oil sector. Much attention has shifted to the Dangote Refinery, which is anticipated to lead the nation toward self-reliance. Located not far from Port Harcourt, the Dangote facility aims to refine up to 650,000 barrels of crude oil per day and has actively sought billions of dollars to support its operations.
According to sources close to the project, Aliko Dangote’s team is negotiating with commercial banks and other lenders to facilitate crude oil imports and production capacity. Insiders indicate the refinery requires around $2 billion every 90 days to maintain consistent supply.
Nonetheless, the Dangote refinery hasn't fully stepped up yet either. While it recently commenced some local supplies after sealing agreements with the Independent Petroleum Marketers Association of Nigeria (IPMAN), many remain skeptical about its full potential to address local fuel demands.
A recent report highlighted how the refinery entered naira-for-crude agreements, facilitating the supply of four cargoes, but challenges loom large as the facility works to clear various funding hurdles.
Both refineries’ struggles highlight the complexity and urgency necessary to overhaul Nigeria’s petroleum industry amid rising prices and demand. For many Nigerians, every delay feels like another blow to the already beleaguered economy, with every missed deadline stirring frustration and distrust.
With citizens calling for accountability and transparency, the NNPCL’s minimal communication hasn’t alleviated these concerns. Lawyers have even intervened, with public figures like Femi Falana filing requests under the Freedom of Information Act, all aiming to acquire clarity about project timelines. Yet such efforts have mostly returned empty-handed, with contractors like Maire Tecnimont SPA citing obligations exempting them from such disclosures.
Regardless, the pressing need for reliable fuel sources is becoming increasingly dire as economic pressures mount. Failure to bring the Port Harcourt Refinery online could mean more reliance on foreign imports, which is often met with skepticism since imported fuels are priced higher and more volatile due to global markets.
Meanwhile, the NNPCL continues to assert its commitment, frequently declaring it will not let Nigeria down. Such proclamations, though reassuring on the surface, feel hollow after the litany of unmet timelines and missed opportunities surrounding the Port Harcourt project. With hopes for functional refineries diminishing, civilians and government officials alike wonder aloud whether Nigeria's oil sector can rise from its own ashes to become the catalyst for economic stability.
It remains to be seen what future deadlines might hold for the Port Harcourt Refinery especially as the NNPCL navigates these unforeseen setbacks. With oil prices fluctuated and patience running thin, the urgency for resolution cannot be understated. Will the promises hold true this time?
