BUSINESS NIGERIA

Nigeria Wallstreet Journal

Port Harcourt Refinery: Questions Mount Over NNPC’s Operational Claims Amid Community and Expert Doubts

The much-anticipated rehabilitation of the Port Harcourt Refinery has sparked intense debate, with allegations surfacing that its recent operations relied on stored petroleum products, not fresh refining, undermining claims of a fully operational facility.

On Tuesday, the Nigerian National Petroleum Company Limited (NNPCL) heralded the refinery’s return to activity after years of dormancy. The company announced that the 60,000-barrels-per-day (bpd) capacity complex was now producing at 70% efficiency, with daily outputs of diesel, kerosene, and petrol. It pledged that 200 trucks of products would be dispatched daily to alleviate Nigeria’s fuel needs.

However, these proclamations have been sharply contested by stakeholders and experts, particularly from the refinery’s host community in Alesa, Rivers State.

Timothy Mgbere, secretary of the Alesa community stakeholders, claimed on Thursday that only six trucks were loaded on the first day of operations, a far cry from the promised capacity. Speaking on Arise TV, he alleged the refinery’s management had released old stock stored in tanks for three years, presenting it as newly refined fuel.

“What happened on Tuesday was a mere spectacle,” said Mgbere. “Only parts of the old refinery’s complex are operational, and even those are functioning at minimal levels. The celebration was premature and misleading.”

Industry experts echoed these concerns, demanding transparency from NNPCL. Energy analyst Nick Agule challenged the company to disclose the source of its feedstock and provide evidence of active distillation units. Another expert, Bala Zaka, criticized the lack of clarity over crude procurement and queried why refined products were not immediately sold to marketers.

“It’s suspicious to incur storage costs while delaying product distribution,” Zaka said, adding that no oil wells nearby had been identified as supplying the refinery.

The controversy is emblematic of broader tensions between NNPCL and host communities. While the company insists the old refinery is functional, Mgbere described inefficiencies in its supposedly automated systems, citing long delays in loading trucks.

“We saw one truck under a bay for over six hours,” he said. “If this is automation, then it’s deeply flawed.”

The community also raised concerns over the competence of contractors handling the rehabilitation, claiming much of the work was subcontracted to local operators with limited capacity.

While the Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed cautious optimism, it warned that the coming days would reveal the refinery’s true status. “We will withhold judgment until we see consistent product loading by Friday,” said Chinedu Ukadike, IPMAN’s National Publicity Secretary.

Similarly, the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) affirmed that the refinery is operating at 70% capacity, with plans to ramp up. PETROAN stated that the Senate Committee on Petroleum Resources had verified the facility’s status during a recent visit.

The Port Harcourt Refinery is a key test of Nigeria’s ability to reduce reliance on fuel imports and stabilise domestic supply. Amid ongoing privatisation debates, stakeholders argue that long-term success will depend on transparent operations, credible management, and sustained investment.

“The NNPCL must bridge the trust gap with Nigerians,” Agule said. “Without openness, these efforts risk becoming another chapter in the refinery’s troubled history.”

The stakes are high, as the refinery’s performance will significantly influence Nigeria’s energy landscape and the credibility of its oil sector reforms. For now, the optimism surrounding its reopening remains tempered by skepticism and unanswered questions.

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