[Explainer]: Here's what we know about the Port Harcourt refinery controversy

The Port Harcourt Refinery heralded as a pivotal step towards Nigeria’s energy independence, is now embroiled in a major controversy over its operational claims.

Managed by the Nigerian National Petroleum Corporation Limited (NNPCL), the refinery has been criticised for operating below expectations despite billions of naira spent on rehabilitation.

Key Issues

1. Operational Status Dispute

The NNPCL recently announced that the refinery had resumed operations, including Premium Motor Spirit (PMS) production.

However, reports suggest the refinery is blending imported components like cracked C5 with Naphtha to create fuel rather than refining crude oil locally.

Critics argue that this approach undermines Nigerians’ investments and fails to deliver on the promise of a fully functional refinery.

2. Quality and Transparency Concerns

Civil society groups, including the Coalition for Accountability and Transparency in Energy Sector (CATES), claim the NNPCL misrepresented the refinery’s status.

Concerns have been raised over the quality of blended fuel, with allegations that it may harm engines and fail to meet international standards.

The NNPCL defended its practices, stating that blending is standard in global refineries, but scepticism remains.

3. Contractor and Local Engagement

Questions have also arisen about the choice of Maire Tecnimont SpA as the contractor for the refinery’s rehabilitation.

Local leaders allege inefficiencies and a lack of community engagement and describe the contractor’s performance as inadequate. Calls for a full audit to clarify the refinery’s actual capabilities have intensified.

4. Delayed Promises and Economic Impacts

Despite assurances of full operations, the refinery reportedly functions at only 70% of its capacity, producing diesel but no petrol.

This shortfall has prolonged Nigeria’s reliance on imported fuel, exacerbating the country’s economic challenges, including high fuel costs and dwindling foreign reserves.

5. Broader Implications

The Port Harcourt Refinery controversy highlights Nigeria’s struggle to achieve energy self-sufficiency.

With its three major refineries plagued by inefficiency and delays, the nation faces mounting pressure to find sustainable solutions to its fuel crisis.

This situation serves as a reminder of the critical need for transparency and effective management in public sector projects.

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