Nigerian Company Fails to Deliver Oil Refinery for the Seventh Time

The Nigerian National Petroleum Company Limited (NNPC) has admitted to missing its deadline yet again for the completion of the Port Harcourt Refinery rehabilitation project. The company, through its Chief Corporate Communications Officer Olufemi Soneye, attributed the delay to unforeseen risks and challenges encountered during the project.  

This is the seventh time the NNPC has missed a deadline for the Port Harcourt Refinery project. In September 2024, the company assured Nigerians that the refinery would be operational by the end of that month. However, nearly two months after the promised date, the facility remains non-functional.

Soneye explained that despite achieving mechanical completion several months ago, the NNPC encountered challenges during the commissioning phase of critical equipment and processing units. These challenges, he said, were common with "brownfield projects" of such scale and complexity.  

"These issues have since been effectively resolved, and commissioning activities have resumed," Soneye assured. "Work is being carried out around the clock to ensure the successful completion of this critical project," he added, but refrained from providing a new deadline.

The NNPC has provided different dates for the completion of this project since December 2023. In July 2024, NNPC Group Chief Executive Officer Mele Kyari boasted that Nigeria would be a net exporter of petroleum products by the end of the year. This statement included the assurance that the Port Harcourt Refinery would begin production in early August 2024. However, that promise, like the previous six, went unfulfilled.

The delay in the Port Harcourt Refinery project is a major disappointment for Nigerians who had hoped that a functioning refinery would lead to a decrease in fuel prices. The country currently relies heavily on imported refined products, contributing to the high cost of fuel.  

The NNPC, however, continues to import petrol, stating that it is no longer the sole distributor at the Dangote refinery.

The Nigerian government had secured a $1.5 billion loan in March 2021 for the renovation and modernization of the Port Harcourt Refinery. However, the contractor handling the project, Maire Tecnimont SPA, has refused to disclose the completion date despite a formal request from human rights lawyer Femi Falana.  

Maire Tecnimont SPA argues that they are a private company not obligated to disclose such information under Nigeria's Freedom of Information Act.  

While the NNPC and other marketers continue to import petrol, local refiners have called on the government to stop issuing import licenses to marketers. They argue that a functional domestic refining industry would be more beneficial to the country's economy.  

Oil marketers, however, maintain that the downstream petroleum sector has been deregulated, allowing dealers to source products from anywhere.