Port Harcourt Refinery Fails to Meet Production Deadline After 7th Postponement In 2024, NNPC Remains Silent

Port Harcourt Refinery Misses 7th Production Deadline, NNPC Remains Silent

1 week ago
3 mins read

The Port Harcourt Refinery in Rivers State has once again failed to commence operations, despite multiple promises from the Nigerian National Petroleum Company Limited (NNPC) and the Ministry of Petroleum Resources.

This marks the seventh postponement of the refinery’s production, with the latest deadline being the end of September 2024. Nigerians, who have been anxiously awaiting the refinery’s reopening, are becoming increasingly frustrated.

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Umar Ajiya, the Chief Financial Officer of NNPC, had earlier assured Nigerians that the Port Harcourt Refinery would begin operations in September 2024. He stated, “Petroleum products will be ready for testing and available for the domestic market by September.” However, with no updates or progress by the end of September, many are beginning to question the reliability of these commitments.

NNPC Silent on Missed Deadline

Efforts to reach the NNPC for comments have been futile. Our correspondent reached out to the company’s Chief Corporate Communications Officer, Olufemi Soneye, on September 22 and again on September 30, but no response was given. This has only fuelled speculation and disappointment among stakeholders.

Despite the silence from NNPC, Maire Tecnimont SpA, the contractor responsible for the rehabilitation of the Port Harcourt Refinery, has indicated that updates will be provided by October 2, 2024.

READ ALSO: NNPC: Petrol Import To Stop As Port Harcourt Refinery Begins Operations Soon

In a statement conveyed through their legal representatives, Olajide Oyewole LLP, the contractor promised to address the queries raised by the Senior Advocate of Nigeria, Femi Falana, regarding the refinery’s rehabilitation timeline. “Our client is considering your letters and intends to respond on or before October 2,” the law firm confirmed.

A String of Broken Promises

This latest delay adds to a series of unmet promises from NNPC. Since December 2023, the company has repeatedly reassured Nigerians that the Port Harcourt Refinery would soon begin fuel production. Mele Kyari, the Group Chief Executive Officer of NNPC, had stated in July that the refinery would be operational by early August 2024. He even told the Senate confidently, “By the end of the year, Nigeria will become a net exporter of petroleum products.”

Kyari’s optimism mirrored his 2019 pledge to deliver all four of Nigeria’s refineries before the end of former President Muhammadu Buhari’s administration. However, as of today, these promises have not materialised.

Nigerians Express Disappointment

Many Nigerians have voiced their frustration over the continuous delays. A local fuel station owner, Mr. Samuel Adebayo, expressed his disappointment, saying, “We have been hearing the same story for years now. Each time they give us a new deadline, and each time, they fail to deliver.”

The refinery, once touted as a solution to Nigeria’s reliance on imported fuel, remains inactive. The country continues to spend as much as N2 trillion monthly on fuel imports, while the promise of self-sufficiency in refining remains elusive.

What’s Next for the Port Harcourt Refinery?

The Port Harcourt Refinery, which was originally built in 1965, has been undergoing rehabilitation for years. In March 2021, the Nigerian government secured a $1.5 billion loan to modernise the facility, a decision that drew criticism from various political leaders, including former Vice President Atiku Abubakar. Abubakar had advocated for the sale of government refineries to private investors, a sentiment he reiterated as delays at the Port Harcourt Refinery continued.

READ ALSO: Dangote Refinery: Of Hopes, Drools And Jokes

Reacting to the federal government’s plan to hand over management of the refinery to private operators, Abubakar said, “I warned the government years ago that the refineries should be sold to capable hands. Instead, we are now dealing with endless delays and empty promises.”

Despite the ongoing issues, Nigerians remain hopeful that the refinery will eventually become operational, bringing down fuel costs and reducing the country’s dependence on imported petroleum products.

Mr. Musa Ibrahim, a commercial driver in Port Harcourt, expressed this hope, saying, “If they can finally fix this refinery, we won’t have to deal with high fuel prices. It’s long overdue.”

A Long History of Delays

This is not the first time Nigerians have been let down by the Port Harcourt Refinery’s rehabilitation timeline. In December 2023, the NNPC announced that the refinery had achieved “mechanical completion” and would soon be refining 60,000 barrels of crude oil daily. However, despite the announcement, the refinery has remained inactive.

NNPC further raised expectations in January 2024, stating that the facility was undergoing testing and would be operational by the end of the month. In February, the Shell Petroleum Development Company of Nigeria Limited delivered 475,000 barrels of crude oil to the refinery, heightening hopes that production would begin shortly. Yet, the refinery failed to meet the subsequent deadlines.

The frustration is palpable, and as another deadline looms in early October, many Nigerians are left wondering whether this will be yet another unfulfilled promise.

Nigerians are growing weary of waiting with the Port Harcourt Refinery now facing its seventh postponement. The continuous delays raise questions about the effectiveness of the NNPC’s management and the future of Nigeria’s fuel independence. As Nigerians wait for the promised October 2 update, the hope remains that the Port Harcourt Refinery will finally come online and relieve the country’s fuel challenges.

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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