In a move signaling renewed focus on infrastructure sustainability, the Nigerian National Petroleum Company Limited (NNPCL) has announced the temporary shutdown of the Port Harcourt Refining Company (PHRC) for scheduled maintenance and sustainability assessment.
The development, which was disclosed on Saturday through a statement by the Chief Corporate Communications Officer of the company, Olufemi O. Soneye, marks another chapter in the decades-long efforts to restore Nigeria’s refining capacity. The shutdown, effective immediately, is part of a routine and planned intervention, NNPCL said.
“The NNPC Ltd remains steadfast in its commitment to delivering sustainable energy security for Nigeria,” Soneye noted, adding that all activities will be conducted transparently and in conjunction with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
A Troubled History of Rehabilitation and Delays
The Port Harcourt Refinery, one of Nigeria’s oldest and most strategic oil refineries, consists of two units: the older plant commissioned in 1965 with a capacity of 60,000 barrels per day (bpd), and the newer unit commissioned in 1989 with a capacity of 150,000 bpd—bringing the combined capacity to 210,000 bpd.
Despite its potential, the facility has been largely dormant for years. Attempts at rehabilitation have been marred by delays, funding bottlenecks, and accusations of mismanagement. The Federal Government has spent billions of naira over the past two decades on so-called turnaround maintenance (TAM) operations that yielded little to no tangible results.
A notable milestone came in March 2021, when the Federal Executive Council approved $1.5 billion for the comprehensive rehabilitation of the refinery, to be executed in phases by the Italian firm Tecnimont S.p.A., with funding support from the African Export-Import Bank (Afreximbank). The contract was expected to deliver the first phase within 18 months, yet the timeline has seen several shifts since then.
Public Skepticism and Calls for Accountability
Public confidence in the refinery's rehabilitation has been lukewarm, primarily due to a history of unfulfilled promises and repeated expenditure with no evident results. Over the years, the Nigerian public and watchdog organizations, including the Nigeria Extractive Industries Transparency Initiative (NEITI), have demanded greater transparency in the utilization of funds allocated to the refineries.
The Buhari administration pledged to fix the refinery before the end of its tenure in 2023, but that deadline lapsed without full restoration of operations. In December 2023, reports surfaced that part of the refinery had been test-run, sparking optimism that local refining of petroleum products would resume soon. However, Saturday’s announcement of another shutdown has again cast doubt over the timeline for full operational revival.
The Cost of Inaction
The inability to refine petroleum products locally continues to exact a heavy toll on the Nigerian economy. The country, Africa’s top crude oil producer, relies almost entirely on fuel imports, subsidized at great expense by the federal government. This has strained national finances, contributed to inflation, and exposed Nigeria to price shocks on the global market.
The recently removed petrol subsidy, a policy enacted by President Bola Ahmed Tinubu on his first day in office, was intended to address these financial leakages. However, the reform has led to sharp increases in fuel prices, triggering public discontent and calls for rapid resuscitation of local refining capacity.
The Way Forward
Industry experts argue that the full revival of the Port Harcourt Refinery—and others in Warri and Kaduna—is essential not just for reducing dependency on imports, but also for creating jobs, improving energy security, and stabilizing the naira.
For now, NNPCL has promised regular updates and assured stakeholders of its commitment to transparency. But for a populace weary of repeated assurances, only a return to active refining and a verifiable end to wasteful subsidies will suffice as proof that the nation's oil sector is finally turning a corner.