Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, has stressed that the Nigerian National Petroleum Corporation (NNPC) should bear responsibility for the rehabilitation of the country’s refineries.
He emphasized that the NNPC must adhere to the deadlines set for the completion of the refinery rehabilitation projects during his response to questions regarding their progress on November 3, following a cabinet retreat.
Minister Lokpobiri elucidated, “Yes, the rehabilitation of the refineries, if you remember, was initiated by the previous administration as part of the President’s directive. I have conducted assessments at all the refineries, and from their briefings, Port Harcourt has three phases.”
He continued, “Phase 1 will be ready by the end of this year. I am not directly responsible for rehabilitation; it’s the NNPC’s responsibility, and they have provided me with assurances, which I hold them accountable for.”
Detailing further, he added, “For the Warri refinery, they have indicated that Phase 1 will also be completed by year-end. Phases 2 and 3 in Port Harcourt are expected to be ready next year, and the entire Kaduna refinery is slated for completion by the end of the following year.”
Minister Lokpobiri emphasized his commitment to holding the NNPC to their stated timelines, asserting, “That is what they have communicated, and I am going to ensure they fulfill their commitments. I believe that if we can achieve some level of rehabilitation by the end of this year, it will enhance our domestic refining capacity.”
Addressing the broader challenge, he added, “But that is not the only issue; the Dangote refinery is also on the horizon. We have issued licenses for several modular refineries, but the hurdle has been securing the necessary feedstock. Even if you have a modular refinery, do you have the crude oil required for refining?”
He concluded by stating, “That’s why I emphasize the need to increase production significantly to ensure we can supply not only the major refineries but also the modular ones. These are the true job creators, and they will work their magic.”
Minister Lokpobiri also noted that the current administration’s primary focus is on boosting oil production substantially, while addressing challenges such as crude oil theft. In September 2023, Nigeria managed to produce approximately 1.3 million barrels of crude oil per day, despite the challenges posed by sabotage of oil and gas facilities in the Niger Delta region.
A Glimpse into Nigerian Refineries
In June 2023, it came to light that the Nigerian National Petroleum Company Limited had allocated a substantial N4.8 trillion for managing the state-owned refineries over the course of a decade, spanning from 2010 to 2020.
The Federal House of Representatives disclosed findings indicating that the operational performance of the Port Harcourt, Warri, and Kaduna refineries had consistently remained below 30% of their capacity since 2010.
The House of Representatives’ report raised concerns over significant financial outlays despite the refineries operating at a fraction of their potential capacity for an extended period.
Furthermore, in August 2023, the National Assembly announced its intentions to investigate the reported N11.3 trillion expenditure by the Federal Government on the turnaround maintenance of Nigeria’s refineries during the same period from 2010 to 2020. This investigative move signals a concerted effort to scrutinize and understand the substantial financial commitment allocated for turnaround maintenance in light of the refineries’ suboptimal performance and operational inefficiencies.
