In an exclusive development, it has been revealed that the Nigerian National Petroleum Company Limited (NNPCL) has yet to commence operations at its newly planned refinery project in Port Harcourt. Instead, the company has resumed operations at the aging Port Harcourt refinery, originally built in 1965. However, the outdated facility is currently only producing diesel, raising concerns about Nigeria's refining capacity and its ability to meet the domestic demand for other petroleum products.
The Port Harcourt Refinery, one of the oldest in the country, has suffered from years of neglect, underinvestment, and technical challenges. While the government and NNPCL have frequently discussed plans to upgrade and expand refining capacity, this recent move to restart the old refinery has sparked renewed questions about the effectiveness of Nigeria's long-term oil sector reform plans.
Sources within NNPCL have confirmed that the resumption of operations at the Port Harcourt refinery was aimed at addressing the nation’s ongoing fuel scarcity issues. However, the decision to run the refinery at limited capacity—focused solely on diesel production—appears to be a temporary measure as work on the new refinery, which was supposed to ramp up production of petrol and other refined products, has yet to begin.
Critics of the move have expressed concerns about Nigeria's reliance on imported refined products. Despite being Africa’s largest oil producer, the country still imports the majority of its refined petroleum products due to inadequate local refining infrastructure. The situation has led to price volatility, fuel shortages, and disruptions to the national economy.
The resumption of the old refinery’s operations, while a step towards addressing the country’s diesel supply, does little to resolve the pressing need for a comprehensive and sustainable solution to the country’s refining sector. The failure to initiate the new refinery project highlights ongoing challenges in Nigeria's oil and gas sector, including the need for substantial investment, technology upgrades, and efficient management to ensure energy security.
NNPCL has not provided a clear timeline for the commencement of the new refinery or an official statement regarding the long-term plans for the aging Port Harcourt facility. Industry experts are urging the government to prioritize modernizing the nation's refining capacity to reduce dependency on imported fuel and curb the economic strain caused by fuel importation costs.