Port Harcourt Refinery Misses Seventh Production Rollout

Once again, the Nigerian National Petroleum Company Limited (NNPC) has failed to commence fuel production at the Port Harcourt refinery, despite previous commitments. The refinery, located in Rivers State, has now missed seven consecutive deadlines, with the most recent being in August 2024.

Nigerians have grown frustrated as promises from the Federal Ministry of Petroleum Resources and the NNPC continue to go unfulfilled. After the missed August deadline, NNPC’s Chief Financial Officer, Umar Ajiya, assured the public that the refinery would start operations in September 2024. He had earlier stated that petroleum products would be available for testing and ready for the domestic market by that time.

However, as of the end of September, no updates have been provided by the NNPC. When our correspondent sought clarification last week, no response was received. Additionally, the Chief Corporate Communications Officer, Olufemi Soneye, did not reply to inquiries sent on September 22 and 30.

In contrast, Maire Tecnimont SpA, the contractor responsible for the refinery’s rehabilitation, indicated that more information on the project’s progress would be shared by or before October 2, 2024. This was communicated through a law firm in response to letters from the Senior Advocate of Nigeria, Femi Falana, who had inquired about the refinery’s completion timeline.

Since December 2023, the NNPC has provided multiple dates for when the Port Harcourt refinery would become operational. Most notably, in July 2024, NNPC’s Group Chief Executive Officer, Mele Kyari, promised the refinery would start production by early August, which marked the sixth postponement of the project.

Despite claims that the refinery had achieved “mechanical completion” in December 2023, it has not begun processing crude oil. Even after receiving a supply of 475,000 barrels of crude from the Shell Petroleum Development Company of Nigeria Limited in February 2024, operations have not commenced.

Over the years, Nigeria’s refineries, including the Port Harcourt facility, have remained non-operational, forcing the country to rely on imported fuel, resulting in significant economic strain, with fuel import bills reaching as much as N2 trillion monthly. The federal government has spent around $4 billion attempting to revive the nation’s refineries, according to Aliko Dangote, President of Dangote Group.

The Port Harcourt refinery has been idle for several years despite its long history. Established in 1965, it fell into disrepair before the government secured a $1.5 billion loan in 2021 to renovate the facility. This decision was met with criticism, with former Vice President Atiku Abubakar advocating for the sale of all government-owned refineries, a sentiment he reiterated recently.

As Nigerians await the completion of the rehabilitation, frustration grows over the lack of transparency and continued delays in restarting fuel production at the nation’s refineries.