Petroleum products marketers have decried the multiple missed deadlines in the rehabilitation of the nation’s refineries urging the Nigerian National Petroleum Company (NNPC) Limited to state definite timelines for their completion.
Recall that the Port Harcourt, Warri, and Kaduna refineries have been undergoing rehabilitation since 2021.
LEADERSHIP checks show that the rehabilitation of the Port Harcourt refinery began in April 2021 after the federal government secured a $1.5 billion contract with Italian engineering company Tecnimont SPA to carry out the work. The old 60,000 barrels per day (bpd) unit of Port Harcourt refinery was mechanically completed in December 2023 and officially restarted production in November 2024
For Kaduna refinery, comprehensive overhauls started with the modernisation of the Kaduna refinery and the second (150,000 bpd) Port Harcourt refinery commencing around November 2024
Speaking under the aegis of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the marketers decried that despite numerous assurances from the NNPC and its officials, the projects have suffered repeated setbacks, with completion deadlines being missed multiple times.
They urged NNPC to enforce strict timelines to ensure these critical projects are completed without further postponements.
National president of PETROAN, Billy Gillis Harry, while addressing newsmen in Abuja, said that the commencement of operations at the 210,000 barrels per day capacity refinery at Alesa Eleme, the 125,000 barrels Warri refinery, and the 110,000 barrels per day Kaduna Refinery will improve Nigeria’s petroleum sufficiency and positively impact price stability. However, he lamented that the project is running behind schedule.
“While we acknowledge and applaud the commencement of the Old Port Harcourt refinery with the capacity of 60,000 barrels per day, we cannot stress enough the urgent need for commissioning, transparency and accountability of the second Port Harcourt Refinery with the capacity of 210,000 barrels per day, the Warri refinery and the Kaduna Refinery.”
PETROAN has demanded that the NNPC provide a specific and realistic timeline for the completion and commissioning of these refineries, especially the second Port Harcourt Refinery rehabilitation project.
“The second Port Harcourt refinery, when completed, will serve the whole of system 2E, comprising about 13 states. “This will reduce the cost of logistics/transportation of petroleum products from Lagos to the system 2E areas.
“The current cost of transportation is highly exorbitant and affects the affordability of petroleum products in System 2E areas.
“Nigerians and stakeholders want to know the exact date of delivery of the revamp project. The Nigerian people deserve clarity on when they can expect the refineries to commence operations and contribute to alleviating the nation’s fuel scarcity challenges.
“We call on the relevant authorities to ensure that the NNPC adheres strictly to the contract timeline, once provided, and maintains regular communication with stakeholders on the project’s progress.”
Given the worrisome nature of these delays and their far-reaching implications for the nation’s economy and welfare, PETROAN called on President Bola Tinubu to intervene by setting up a high-level facilitating panel.
According to the association, this panel should comprise relevant stakeholders, including representatives from NMDPRA, NUPRC, NNPC, NUPENG, PENGASSAN, MEMAN, DAPPMAN, PETROAN, and other industry experts, to identify bottlenecks, provide solutions, and ensure the project’s timely completion.
“The continuous delay in the completion of the Port Harcourt Refinery rehabilitation project and other refinery projects is unacceptable, and Nigerians deserve to know when the projects will be completed. The huge amount borrowed for the projects should be a serious concern to all citizens, and we will demand accountability for every naira spent on this project.”
PETROAN commended President Tinubu for appointing Bayo Ojulari as the Group CEO of NNPC, calling on the new NNPC helmsman to see this glorious appointment as a call to national duty and put in his best to save the industry.
PETROAN noted that the current vacancy in the office of the managing director of the Port Harcourt Refinery could be a significant barrier to the project’s progress.
“We strongly recommend that the group chief executive officer of NNPC appoint a substantive managing director for the Port Harcourt Refinery in the shortest possible time.
“This appointment would provide the necessary leadership and direction to drive the project forward and ensure its timely completion. The prolonged delay in the refinery’s completion not only undermines the nation’s efforts to achieve self-sufficiency in petroleum products but also exacerbates the economic hardship millions of Nigerians face. It is imperative that decisive action is taken to bring this project to fruition without further delay,” he said.
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