PH Refinery Revival:  NNPC’s Bold Leap Towards Energy Independence for Nigeria 

Ifeanyi Onuba

The recent resumption of operations at the Port Harcourt Refinery is a defining moment for Nigeria, signaling a bold commitment to reshaping its energy sector and reasserting its position as a leader in Africa’s oil and gas industry.

After over five years of dormancy of the Port Harcourt refinery, this achievement under the visionary leadership of the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mallam Mele Kyari is a powerful demonstration of what vision, determination, and collaboration can accomplish.  The Port Harcourt refinery, located in the oil-rich Niger Delta region of Nigeria, has been operational since 1965. It is the oldest and biggest of three government-owned oil refining sites in Nigeria.

The oil refinery complex consists of a 60,000 barrels per day old refinery that started operations in 1965 and a 150,000bpd new refinery that came on stream in 1989. Despite having a combined crude processing capacity of 210,000bpd, the Port Harcourt refinery, like other state refineries of the country, had been operating only at a fraction of its capacity over the last few decades due to process inefficiency and lack of maintenance. This has led to the growing reliance of Nigeria, Africa’s largest crude producer, on imports of refined petroleum products.

On April 7, 2021, NNPC Ltd officially signed a contract with Tecnimont SPA for the $1.5bn rehabilitation program of the Port Harcourt Refining Company. Parties in the agreement also announced the commencement of the project following the signing of the contract at the headquarters of the company in Abuja.

The rehabilitation project, being undertaken in three phases, is expected to finally be completed by 2025. The first phase of the project, which is the mechanical completion phase, was achieved in December last year, while production of petroleum products commenced last week Tuesday. The rehabilitation of the Port Harcourt Refinery is a giant leap towards reducing Nigeria’s dependence on imported petroleum products. For years, this reliance has drained foreign reserves and left the nation exposed to volatile global oil markets. According to industry data, Nigeria spends about $21bn annually on importation of petroleum products.

By reactivating the refinery, Nigeria has taken a decisive step to close this gap, ensuring the availability of locally refined fuel and easing the economic burden on its citizens.

The refinery, now capable of dispatching 200 trucks of petroleum products daily, represents more than just a technical upgrade—it is an economic game-changer. It promises to stabilize fuel supply, lower costs for businesses, and create thousands of jobs across the value chain. The ripple effects will be felt in improved trade, enhanced transportation, and a more robust industrial sector.

The success of this project highlights the power of strategic leadership. President Bola Tinubu’s unwavering focus on energy reform, coupled with the foundational work of former President Muhammadu Buhari demonstrates the importance of continuity in governance, and their combined efforts have paved the way for a more self-reliant energy sector.

The management of NNPC Ltd under the visionary and dynamic leadership of Kyari deserves special commendation. Their persistence, transparency, and adherence to global standards have transformed a long-neglected asset into a symbol of national pride. This achievement reflects the exceptional leadership, dedication, and vision that Kyari has consistently demonstrated in steering the NNPC Ltd towards unprecedented success.

His unwavering commitment to sustainability in the oil and gas sector is particularly commendable. By revitalising such critical infrastructure, Kyari has not only enhanced the nation’s energy security but also ensured that it is contributing significantly to economic growth. The milestone that has been achieved also underscores the confidence that President Tinubu  has in Kyari’s transformative approach to leadership.

Also, the African Export-Import Bank’s confidence in financing the rehabilitation underscores the trust in Nigeria’s ability to deliver on ambitious projects. It must be stated that the Port Harcourt Refinery’s upgrade goes beyond its restoration. Its state-of-the-art facilities, including advanced distillation and hydrotreating units, represent a leap forward in technological capability. The refinery’s compliance with environmental standards, as highlighted by regulators, reflects a commitment to sustainability that aligns with global expectations.

This modernised facility will not only produce refined products for domestic use but also position Nigeria as a regional refining hub. The commencement of the refinery has also set the stage for Nigeria to become a net exporter of refined petroleum products, boosting foreign exchange earnings and strengthening its economy.

The revival of the Port Harcourt Refinery is also a cornerstone of President Tinubu’s Renewed Hope Agenda, which envisions energy sufficiency and economic prosperity for all Nigerians. With plans underway to rehabilitate the Warri and Kaduna refineries which are expected to come on steam by next year, as well as scale up gas production, the NNPC Ltd is laying the groundwork for a comprehensive energy transformation.  This achievement also builds confidence among Nigerians who have long awaited meaningful progress in the oil and gas sector. It demonstrates that the government is capable of delivering on its promises, fostering optimism for the future.

While the journey is far from over, the Port Harcourt Refinery’s success is a shining example of what Nigeria can achieve with focus and collaboration. As the remaining phases of the refinery’s rehabilitation are completed, the NNPC Ltd has demonstrated that it has the capacity to maintain transparency and efficiency of its operations so as to maximize its potentials for the benefits of all Nigerians.

Looking ahead, Nigeria must continue to diversify its energy sector, investing in renewable energy and adopting sustainable practices. This will not only reduce the nation’s carbon footprint but also ensure a balanced and resilient energy mix for future generations.

The revival of the Port Harcourt Refinery is more than an infrastructure project—it is a beacon of hope and a catalyst for transformation. It represents a Nigeria that is reclaiming control of its resources, empowering its people, and building a future of shared prosperity.

As the country steps into this new era, the refinery stands as a testament to what can be achieved when leadership, innovation, and resilience come together. This is not just a milestone; it is the dawn of a brighter, more self-reliant Nigeria.

Onuba, a chartered accountant, wrote in from Abuja