Controversy over Port Harcourt Refinery’s operational status

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The Port Harcourt Refinery, long heralded as a solution to the nation’s dependency on imported refined petroleum products, is once again the subject of controversy.

While the Nigerian National Petroleum Company Limited insists that the Refinery is operational, host communities and sceptics are raising eyebrows, questioning the validity of these claims.

Many Nigerians are wondering if what we are celebrating is yet another half-baked project, or another white elephant project.

The NNPC recently announced that the Port Harcourt Refinery has resumed crude oil processing following a long-delayed $1.5 billion rehabilitation effort.

Officials assured the public that products like diesel and aviation fuel are now being produced, with premium motor spirit to follow shortly.

Yet, representatives of the host community in Alesa Eleme, notably Timothy Mgbere, vehemently contested these assertions, claiming that no fresh crude oil has been processed.

Instead, he alleged that the NNPC is simply recycling old stock.

“Why is it so difficult for NNPC to provide proof? Pictures of pipelines flowing with crude oil, detailed production schedules, and transparent reports on outputs would go a long way in silencing critics. In the absence of such evidence, scepticism thrives.”

Who should the citizens believe because there are still doubts among many Nigerians and industry experts that the facility has actually started producing?
Some are disputing NNPC’s claim that trucks have started loading products at the refinery as of Tuesday.

The argument stems from the way NNPC and other stakeholders loyal to it hurriedly made a show of the commencement of operation at the refinery after years of delay and deadlines missed.

The old Port Harcourt Refinery and the new one located in Eleme in Rivers State have two operational units established in 1965 and 1989, respectively, with a combined installed capacity of 210,000 bpd, the older being a 60,000 bpd facility and the newer plant having a 150,000 bpd capacity.

The Nigerian federation through the NNPC owns four refineries which have not been functioning and producing for many years, including the two Port Harcourt Refineries, as well as the Warri and Kaduna Refineries, with a combined 450,000 bpd capacity.

The Port Harcourt Refinery has been under rehabilitation since 2021 following the approval of a $1.5 billion contract by the Federal Government in 2019 and the Federal Government had said the rehabilitation will be completed in three phases of 18, 24 and 44 months.

Providing a scanty detail of the volume from the now producing 60,000 bpd old Port Harcourt Refinery, NNPC said it was refining 1.4 million litres of petrol per day, a figure viewed by industry and market experts as an extremely low figure by all estimations, when compared with the output of the Dangote Refinery.

The company said the reactivation was in fulfillment of its pledge to re-stream the Port Harcourt Refining Company, signaling the commencement of crude oil processing from the plant and delivery of petroleum products into the market.

It also disclosed that trucks had commenced loading petroleum products, which included Premium Motor Spirit (PMS) or petrol, Automotive Gas Oil (AGO), otherwise called diesel, as well as Household Kerosene (HHK) or kerosene, while other product slates will be dispatched as well.

Although the volume now coming out from the old Port Harcourt Refinery is nowhere close to that of Dangote Refinery, which is producing over 30 million litres of petrol, aside from other products, industry experts believe that the return of the 60,000 bpd facility has opened the door of competition in the Nigerian refining and petroleum marketing business.

According to them, it is a positive development in the country as Nigeria’s dream of becoming a refining hub and ending the importation of refined products is manifesting.

It is imperative to state pointedly, that this is not the first time promises surrounding the Port Harcourt Refinery have made headlines.

Originally slated for completion by December 2023, the project has been dogged by delays, with officials citing unforeseen challenges during rehabilitation. Mechanical completion was reportedly achieved months ago, and 450,000 barrels of crude oil were said to have been received for processing.

But if everything is in place, why does the refinery’s readiness remain a point of contention?

Accordingly, NNPC has asked for patience, noting that regulatory compliance tests were ongoing. These delays, they argue, are necessary to ensure that the refinery does not falter once fully operational.

However, the question remains: how long can the public’s patience endure? Is this merely another case of political theatre, designed to distract from deeper inefficiencies in the oil sector?

The controversy over the refinery’s operational status underscores a larger issue: the lack of transparency in Nigeria’s public sector.

How can a community that hosts one of the nation’s most critical infrastructure projects be so unsure of its functionality?

If the refinery is indeed operational, why are the residents of Alesa Eleme unaware of any tangible activity?

Without mincing words, Mgbere’s claims point to a communication breakdown, but they also raise an unsettling question: if the refinery is not processing crude oil, what is it doing?

Are we witnessing a deliberate obfuscation of facts, or is this merely a case of mismanagement? Either way, the absence of clear evidence fuels suspicion and undermines public trust.

Why is it so difficult for NNPC to provide proof? Pictures of pipelines flowing with crude oil, detailed production schedules, and transparent reports on outputs would go a long way in silencing critics. In the absence of such evidence, scepticism thrives.

The dispute over the refinery is not merely technical; it is deeply political. In a nation where public infrastructure often serves as a pawn in political manoeuvring, the refinery’s status carries significant weight.

For the government, declaring the project a success bolsters its narrative of progress. For opposition voices, exposing flaws offers an opportunity to criticise leadership.

Amidst the controversy, one thing is clear: Nigerians deserve transparency. The rehabilitation of the Port Harcourt Refinery is a project of national importance, funded by public resources. As such, its progress should be subject to public scrutiny.

NNPC must do more to bridge the gap between its claims and the community’s observations. Regular updates, independent audits, and open communication channels could help rebuild trust.

The government must also prioritise infrastructure projects based on genuine needs rather than political expediency.

If the refinery is operational, let the evidence speak for itself. Marketers loading PMS and distributing it across the country would provide the kind of visibility that no press release can achieve.

As Nigerians, we must continue to hold our leaders accountable, demanding not just promises but tangible results.

For now, the refinery remains both a symbol of hope and a reminder of the challenges that still lie ahead.