Stakeholder Faults NNPC’s Decision to Retain Port Harcourt Refinery
A community leader and official of the Petroleum Products and Retail Owners Association of Nigeria (PETROAN), Joseph Obele, has expressed strong dissatisfaction with the Nigerian National Petroleum Company Limited’s decision to retain ownership of the Port Harcourt Refinery, rejecting any plans to privatise it.
Speaking to journalists in Port Harcourt, Obele — who serves as PETROAN’s National Publicity Secretary — said the NNPC’s continued hold over the refinery is a missed opportunity for revitalising the facility and boosting the economy of host communities.
He criticised the decision by NNPC’s Group Chief Executive Officer, Bayo Ojulari, who had stated that the refinery would not be sold.
Obele said, “I strongly disagreed with the Nigerian National Petroleum Company Limited’s decision to rule out the sale of the Port Harcourt Refining Company.”
Describing Ojulari’s announcement as bad news, Obele argued that government control of the refinery has historically resulted in inefficiency and neglect.
“This isn’t good news. Plans to sell the Warri and Kaduna refineries while keeping Port Harcourt under NNPC management are concerning, given NNPC’s history of corruption and favouritism. Private firms tend to prioritise host communities’ interests, as seen with Indorama Petrochemical,” he stated.
He noted that under NNPC management, the country had endured recurring fuel scarcity, price volatility, and broader economic challenges.
“The NNPC has consistently disappointed Nigerians with its inefficient management of refineries, leading to fuel scarcity, price hikes, and economic hardship. Its track record of corruption, inefficiency, and neglect is well-documented. It’s time for a change,” he stated.
Obele believes that privatising the Port Harcourt refinery would bring widespread benefits, including increased productivity, capital investment, and improved accountability.
He listed potential advantages such as: improved technical expertise, job creation, reduced bureaucracy, transparency, better global competitiveness, and effective resource management. According to him, these gains would outweigh any perceived risks associated with privatisation.
Calling for President Bola Tinubu’s intervention, he appealed for a policy reversal in favour of private sector participation.
“The community is ready to receive a private firm taking over the refinery with the highest sense of hospitality and cooperation. We assure any private firm of a warm welcome and collaborative working relationship to ensure the refinery’s success, which will in turn benefit our community and the nation.”
Obele’s remarks come days after the NNPC reaffirmed its decision to retain the refinery, despite months of shutdown and uncompleted rehabilitation. The facility has remained idle since it was shut down on May 24 for maintenance, with no reopening in sight nearly two months later.
During a recent town hall at the NNPC Towers in Abuja, Ojulari was quoted as saying that the company’s new position was based on “detailed technical and financial reviews” across the three state-owned refineries — in Port Harcourt, Kaduna, and Warri.
He added that the prior strategy to operate the Port Harcourt plant before full rehabilitation was a flawed move by past management.
“The ongoing review indicates that the earlier decision to operate the Port Harcourt refinery prior to full completion of its rehabilitation was ill-informed and sub-commercial,” Ojulari reportedly said.
He maintained that the NNPC was exploring technical partnerships to complete the rehabilitation and reiterated that selling the refinery would “lead to further value erosion.”
The decision has reignited public debate, especially following a comment made by Ojulari at the OPEC Seminar in Vienna, where he said “all options are on the table,” sparking speculation of a potential sale.
Meanwhile, President of the Dangote Group, Alhaji Aliko Dangote, added fuel to the controversy when he claimed that the government-owned refineries “may never work again” despite consuming over $18 billion in rehabilitation efforts.
PUNCH
