The Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, has described the recent reopening of the Port Harcourt Refining Company (PHRC) as a waste of resources, raising serious questions about one of the federal government’s flagship efforts to revive Nigeria’s refining capacity.
In statements made during a recent industry engagement, Ojulari criticised the decision to restore operations at the Port Harcourt refinery — a move that had been widely publicised as a step toward ending Nigeria’s long dependence on imported petroleum products.
According to the NNPC boss, the financial and logistical investments poured into reviving the decades-old facility did not deliver the expected economic or operational benefits. He argued that the resources deployed could have been better applied to more sustainable and efficient solutions to Nigeria’s fuel supply challenges.
The Port Harcourt refinery, one of three major government-owned refineries in Nigeria, has suffered from years of neglect, underinvestment and technical decay. Previous attempts at rehabilitation have repeatedly failed to achieve lasting output, leaving the country heavily reliant on refined fuel imports despite abundant crude oil reserves.
The federal government, over the past year, had touted the reopening of the Port Harcourt facility as part of a broader strategy to rejuvenate state-owned refineries and reduce import bills. The facility had briefly resumed operations following repairs and modernization efforts, offering a glimmer of hope for local refining capacity.
However, Engr. Ojulari’s comments suggest that the anticipated gains — including consistent production, cost savings and improved energy security — have not materialised to justify the investment. While he did not disclose specific figures, the GCEO emphasised that the decision must now prompt a strategic rethink of national refining policy.
Industry analysts say the criticism underscores longstanding challenges in Nigeria’s downstream sector, including infrastructure deterioration, governance issues, inconsistent policy frameworks, and the high cost of maintaining ageing refineries. They argue that without a clear, long-term strategy and accountable management, repeated attempts to revive such assets may continue to fall short.
The statement from the NNPC leadership is likely to fuel public debate and draw renewed scrutiny of government spending in the oil sector — particularly on projects that have historically struggled to break even or deliver sustained output.
When reached for comment, officials at the Ministry of Petroleum Resources reiterated the government’s commitment to energy security but noted that detailed evaluations of all refinery operations, including Port Harcourt, are being reviewed to determine the best path forward.
As Nigeria continues to grapple with fuel supply challenges, the debate over whether to rehabilitate existing refineries or invest in new downstream infrastructure is expected to intensify.
