The Nigerian National Petroleum Company Limited (NNPCL) recently announced that the Old Port Harcourt Refinery is operating at 70% capacity, with plans to increase it to 90%. While this development has sparked optimism, a closer look reveals underlying challenges that raise concerns about transparency, operational efficiency, and long-term sustainability.
Disputed Claims of Refinery Functionality
NNPCL’s declaration of progress has faced criticism from community stakeholders and energy experts. Timothy Mbiri, a community representative from LASA Stakeholders, expressed doubts about the refinery’s true operational status. According to him, what was showcased as a significant milestone was more of a “photo op,” with only a few units functioning and minimal product output.
Mbiri highlighted that the refinery’s output has been limited to four trucks of product in a single day, questioning the claim of 70% functionality. He pointed out that manual loading in the past was more efficient than the current automated system, which takes hours to load a single truck.
Issues with Project Execution and Contractor Selection
One of the major concerns raised is the choice of contractor for the refinery’s rehabilitation. Mbiri criticised the decision to award the contract to Technimont SPA, a company allegedly lacking the necessary equipment and relying heavily on subcontractors. The involvement of inexperienced personnel and reported corruption within the project’s management has further complicated progress.
Energy expert Nick Agule also questioned NNPCL’s communication strategy, urging greater transparency. He called for an independent audit to verify the refinery’s operations and ensure that public funds are being utilised effectively.
Community Exclusion and Lack of Engagement
Another pressing issue is the lack of community involvement in the project. Mbiri revealed that Technimont SPA has not engaged with the local community, depriving residents of job opportunities and other benefits associated with the project. The absence of community leaders at the launch event further underscored the disconnect between NNPCL and the affected stakeholders.
The Need for Transparency and Accountability
Agule emphasised the importance of transparent reporting from NNPCL. He suggested that journalists should be granted access to the refinery to verify its operations. He also explained that the key indicator of a functional refinery is the activation of the crude distillation unit, which NNPCL has yet to demonstrate publicly.
Recommendations for Moving Forward
Experts and stakeholders agree that the path forward requires honesty and accountability. Conducting a comprehensive system audit of the refinery and addressing the issues related to contractor performance and community engagement are critical steps. Ensuring that all operational units are functional and that the refinery can genuinely contribute to Nigeria’s energy needs will be pivotal in restoring public trust.
The Port Harcourt Refinery’s reactivation is a significant milestone, but questions about its true operational status and management challenges remain. For Nigeria to achieve its energy goals, transparency, effective project execution, and community inclusion must be prioritised. Only then can the refinery’s potential be fully realised, contributing meaningfully to national energy security and economic stability.
