The news that the 60,000 barrels per day first Port Harcourt refinery has come to life after years of gulping millions of dollars in the name of repairs and maintenance has not come to most Nigerians as a big surprise.
After several assurances and of re-igniting the flames at the refinery from the days of Presidents Olusegun Obasanjo, Umaru Yar’adua, Jonathan Goodluck, Muhammadu Buhari and now Bola Tinubu, Nigerians are now looking forward to a better deal in the pricing of PMS and other bye products from the Dangote and now the Port Harcourt 1 refinery.
President Bola Tinubu while extending heartfelt congratulations to the Nigeria National Petroleum Company Limited, NNPCL on the successful revitalization of the Port Harcourt 1 refinery recently, directed the NNPCL to promptly reactivate the Port Harcourt 2, Warri and Kaduna refineries.
The President used the opportunity to pay tribute and acknowledge the pivotal role of former President Muhammadu Buhari in initiating the comprehensive rehabilitation of all our refineries.
The Nigerian government’s promises to revive the country’s moribund refineries have been a long-standing issue that has been a ‘thorn in the flesh’ of the country.
Nigeria has four major refineries, two in Port Harcourt, Rivers State, which combine to form the Port Harcourt Refining Company 1 and 2, PHRC with a combined installed capacity of 210,000 barrels per day, bpd, the Kaduna Refining and Petrochemical Company Limited, KRPC with an installed capacity of 110,000 bpd; and the Warri Refining and Petrochemical Company Limited, WRPC with an installed capacity of 125,000 bpd.
The breakdown of the local refineries pushed Nigeria to depend solely on importation of petroleum products for domestic use for many years, constituting a major drain on the nation’s foreign reserves.
Former President Olusegun Obasanjo in May 2007, sold Port Harcourt and Kaduna Petrochemical Refineries to Aliko Dangote and partners under the aegis of Bluestar consortium in the sum of $750 million.
In July 2007, President Umaru Yar’Adua reversed the sale. In May 2011, President Goodluck Jonathan initiated a 24-month comprehensive rehabilitation as part of his four-year term agenda towards growing the economy through the oil sector within 24 months.
In a surprising turn of events, President Jonathan approved the privatisation of the four refineries in December 2013 and set up a steering committee to oversee the process and make recommendations to the National Council on Privatisation.
However, in January 2014, President Jonathan’s administration reversed the privatisation plan following Unions threats to embark on strike.
On coming to power in May 2015, President Buhari took the bull by the horn and pledged to revive the country’s minimally performing refineries to optimum capacity and consequently boost the nation’s forex exchange earnings.
Towards realisation of this pledge, President Buhari gave his minister of state for Petroleum, Ibe Kachikwu 90 days ultimatum for the refineries in Warri and Kaduna to commence operations.
Regretably, that was not to be due to a number of bureaucratic bottlenecks and technical issues.
However, the issues remain unresolved despite pressures by PMB until early 2023 when President Buhari awarded the contract for the rehabilitation of the Kaduna and Warri refineries in the sum of USD1.5 billion to Daewoo Engineering and construction company. The rehabilitation work was due for completion on or before PMB handed over on May 29 last year.
The joy for all Nigerians is that another PMB legacy project has come on stream and seen the light of the day for the good of the economy and Nigerians. Nigerians are indeed excited by this milestone in the country’s oil and gas sector.
MUSA ILALLAH
A public affairs analyst. He can be reached on musahk123@yahoo.com
