- After a $1.5 billion renovation, the Port Harcourt refinery produces 210,000 barrels daily, boosting Nigeria’s energy capacity and reducing reliance on fuel imports.
- The refinery’s reopening will support local job creation, strengthen technical expertise, and foster business opportunities, especially for small enterprises.
- NNPCL aims to revive more refineries, including Warri and Kaduna, positioning Nigeria as a critical African refining hub.
The Nigerian National Petroleum Corporation Limited (NNPCL) reopened the Port Harcourt refinery after completing a $1.5 billion renovation. This move advances Nigeria’s oil sector significantly. Located in the Delta region, the refinery had shut down for four years due to ageing and damaged infrastructure.
The African Export-Import Bank (Afreximbank) financed the project, which began in 2021. NNPCL restored the refinery’s production capacity to 210,000 barrels per day (bpd). President Bola Tinubu hailed the reopening as essential for boosting Nigeria’s energy independence.
The refinery’s return will drive economic growth at both local and national levels. By increasing the supply of refined products like diesel and kerosene, NNPCL aims to reduce fuel imports. Adewale Dosunmu, a petroleum engineering professor at the University of Port Harcourt, said this project would improve local technical skills and create new business opportunities, especially for small businesses.
This effort supports the government’s push to cut down on fuel imports, a pressing need after the 2023 fuel subsidy removal caused prices to soar and triggered protests. By increasing refining capacity, Nigeria plans to meet domestic fuel needs and lower the cost of imports.
NNPCL’s Managing Director, Mele Kyari, outlined plans to restart the second Port Harcourt refinery and the Warri and Kaduna refineries. NNPCL aims to make Nigeria a key refining hub in Africa.
The Port Harcourt refinery’s reopening follows the commissioning of the Dangote refinery, owned by billionaire Aliko Dangote. These two significant projects will help Nigeria meet its energy needs better and possibly explore export opportunities as refining capacity expands.
Industry experts stress that the long-term success of these initiatives hinges on how well the government maintains the infrastructure. Authorities must address the recurring issues of vandalism and sabotage, which have plagued the oil industry. Ensuring the security of these facilities will be critical to sustaining refinery operations and achieving production targets.
By reopening the Port Harcourt refinery, NNPCL takes a significant step towards revitalising Nigeria’s refining industry. After years of dysfunction, the country now has the opportunity to reduce its dependence on imported fuel. The combined output of the Port Harcourt and Dangote refineries could also strengthen Nigeria’s position in the regional oil market.
However, consistent efforts to maintain the facilities and address security challenges will determine the long-term success of these projects. Nigeria’s ability to keep its refineries running smoothly will be crucial as it seeks to regain its status as a leading energy producer in Africa.