The Nigerian Content Development and Monitoring Board (NCDMB) has officially secured a 20% equity stake in a new 100,000 barrels per day (bpd) refinery being built in Rivers State. The refinery project is being developed by African Refinery Group Limited (ARPHL) in partnership with the Nigerian National Petroleum Company (NNPC) Limited.
The deal was signed at the NCDMB liaison office in Abuja, with NCDMB Executive Secretary, Mr Felix Ogbe, and Managing Director of African Refinery Port Harcourt Limited, Mr Tosin Adebajo, representing their respective organisations.
A Major Step for Local Refining
This investment is a significant step for Nigeria’s oil and gas industry, as it aligns with the government’s push to increase local refining capacity and reduce the country’s dependence on imported fuel.
The new refinery will be co-located within the Port Harcourt Refining Company Limited (PHRC) complex in Alesa Eleme, Rivers State. NCDMB revealed that the investment went through a thorough technical, commercial, and regulatory evaluation before being approved.
“This equity investment is the first under my leadership, and it follows a rigorous review process to ensure it aligns with our strategic objectives,” said Mr Ogbe.
NCDMB has also set up a strong corporate governance structure to protect its investment and ensure the refinery operates efficiently.
Backing Nigerian-Owned Refineries
The investment is part of NCDMB’s commercial venture programme, which aims to support Nigerian-owned businesses in the oil and gas sector. Section 70(h) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act empowers the board to assist local companies in building capacity.
The NCDMB statement emphasised that the project will:
- Boost Nigeria’s refining capacity
- Create jobs during both construction and operation
- Reduce fuel importation and improve fuel availability
- Support government policies on local refining
NNPC and ARPHL’s Role in the Project
The NNPC Limited holds a 15% equity stake in the refinery, having signed a share subscription agreement in 2024.
The project began in 2016, when ARPHL won a bid to build a refinery inside the Port Harcourt Refinery Complex. In 2019, the company signed a sub-lease agreement with NNPC, securing 45.466 hectares of land within the refinery complex for 64 years.
Under the investment plan, NCDMB will exit the project after seven years from the refinery’s commercial launch, allowing private investors to take over full ownership.
NCDMB’s Other Refinery Investments
This is not the first time NCDMB has invested in local refining. The board has previously supported:
- Waltersmith Refinery (5,000 bpd) – Ibigwe, Imo State
- Azikel Group Refinery (12,000 bpd) – Gbarain, Bayelsa State
- Duport Midstream Refinery (2,500 bpd) – Egbokor, Edo State
These projects are at different operational stages, but Waltersmith Refinery has been the most successful, generating ₦23.6 billion profit after tax in 2023 and ₦4.5 billion in dividends (pending final approval at its AGM). NCDMB holds a 30% stake in Waltersmith and received an interim dividend of ₦450 million in 2023.
NCDMB’s 20% stake in the 100,000 bpd refinery marks another strategic step in Nigeria’s journey towards fuel self-sufficiency. By supporting local refineries, the board is helping to create jobs, reduce import dependence, and stabilise fuel prices.
With NNPC and private investors backing the project, this refinery could be a game changer for Nigeria’s oil and gas industry. If successful, it will boost local fuel supply, ease pressure on foreign exchange, and strengthen the country’s energy security.
