Amid ongoing scepticism and criticism surrounding the revamp of the Port Harcourt Refinery, former group managing directors (GMDs) of the Nigerian National Petroleum Company Limited (NNPC Ltd) have commended the efforts of the current management team, led by Mele Kyari.
After inspecting the refinery during their former NNPC GCEOs Forum in Port Harcourt, the ex-GMDs described the achievement as “magic.”
Speaking on behalf of the group, Dr. Jackson Gaius-Obaseki, who served as GMD from 1999 to 2003, explained that many critics fail to understand the magnitude of work involved.
He clarified that this was not a routine Turnaround Maintenance (TAM) but a full rehabilitation that modernised a plant originally built in 1965 into a state-of-the-art facility by 2024.
“Some of those who criticise do not understand the extent of the work carried out. They mistake it for the usual Turnaround Maintenance. This is a complete rehabilitation—transforming a plant built in 1965 into a modern one in 2024. We appreciate the effort,” Dr. Obaseki stated.
On petroleum pricing, he emphasised that petrol pump prices are influenced by crude oil prices and called for public understanding.
The rehabilitation of the Port Harcourt Refinery has sparked significant criticism due to concerns over its cost, efficiency, and the historical context of Nigeria’s oil sector.
Originally commissioned in 1965, the refinery has suffered from years of neglect, leading to a drastic decline in operational capacity.
The federal government approved a $1.5 billion contract for its rehabilitation in 2021, aiming to restore it to 90 per cent capacity by 2025.
Critics argue that investing such a large sum in rehabilitation may be economically unwise compared to building a new facility. They highlight the persistent issues of corruption, pipeline vandalism, and crude oil theft that have plagued Nigeria’s refineries, raising doubts about the long-term viability of the Port Harcourt facility.
Despite the resumption of operations, skepticism remains regarding the actual output and quality of products being produced.
The refinery’s complex history includes multiple failed attempts at rehabilitation and operational setbacks. As of late 2024, reports indicated that only a fraction of expected production was realised, with allegations suggesting that recently loaded petroleum products were not freshly refined but rather stored from previous years.
This situation reflects broader systemic issues within Nigeria’s oil industry, where state-owned refineries have historically been financial burdens rather than profitable entities.
Supporters of the rehabilitation project argue it could create jobs and reduce fuel prices by decreasing reliance on imported petroleum products.
However, many experts caution that without addressing underlying operational inefficiencies and management issues, the investment may not yield the anticipated benefits. The contrasting views highlight a critical debate about Nigeria’s energy future and the role of state-run enterprises in achieving energy security and economic stability.
Gaius-Obaseki however hailed the achievement as a testament to courage and dedication, urging the GCEO, Mele Kyari, to remain focused on delivering value to Nigerians.
Other former GMDs present at the meeting included Chamberlain Oyibo, Funsho Kupolokun, and Andrew Yakubu, who collectively lauded the success of the project.
