PH Refinery Delays Spark Fresh Criticism Against FG

Federal Government faces backlash from Nigerians as the PH refinery take-off continues to be delayed, with repeated announcements but no progress.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) stated on August 8th that the Port Harcourt Refinery would commence operations within four weeks, potentially in response to the government’s goal of producing petroleum products by August. Nigerians were made aware this announcement.

The association stated that in addition to supplying petrol to marketers, the refinery would provide 10-12 million litres.

During an interview on national television, Zarma Mustapha, the National Operations Controller for IPMAN revealed that the new refinery will increase the country’s daily supply of petroleum products to approximately 11-15 million liters. This development is expected to provide energy availability all over Nigeria.

He stated that the refinery was scheduled to function autonomously and market its products at the current prevailing price with minimal or no intervention from the government.

The understanding is that the Port Harcourt Refinery will operate autonomously and set prices according to current market conditions in order to recoup its expenses.

The upcoming refinery will not operate like a government entity in the past. I am confident that it will significantly increase both demand and supply of PMS, reaching as high as 11 to 15 million litres per day.

He stated his assurance and positivity for the practicality of this August deadline. The refinery will be operational, generating all essential components as intended.

Despite the promising news, Nigerians received it with skepticism due to numerous unfulfilled promises made in the past.

The development was described by a section of society as a crop of pledges that never materialized, accompanied by constant deceit.

There are those who think that, despite some offering the government their trust, the latest assurance – fourth in a succession of such promises – may still fail as its predecessors did.

Earlier, it was communicated to Nigerians that the refinery would commence operations in December 2023.

Despite expressing optimism about the December 2023 deadline, Minister of State for Petroleum Heineken Lokpobiri ultimately failed to deliver and did not offer any apologies.

Read Also: CEO: Nigerian Crude Would be Processed at the Dangote Refinery

Two weeks from Thursday, March 13th, 2024 was the expected date for Nigerian citizens to witness the operational state of Port Harcourt Refinery again.

During an interactive session with the Senate, Mele Kyari, the Group Chief Executive Officer of Nigerian National Petroleum Company Limited (NNPCL), gave Nigerians assurance that operations at the Port Harcourt Refinery would start in two weeks following rehabilitation.

He guaranteed Nigerians that the Port Harcourt and other refineries’ delivery date would not be changed under any circumstances.

Kyari, as stated by the NNPCL’s representative Olufemi Soneye, affirmed that they will uphold their commitment to rehabilitate refineries. Furthermore, he announced the completion of PHRC’s mechanical work in December.

“We currently have crude oil stored and undergoing regulatory compliance testing before recommencing operations. I can assure you that the refinery will be operational within the next two weeks.”

Mechanical work has been carried out on the Warri Refinery and it is currently undergoing regulatory compliance procedures in conjunction with our regulators. Although Kaduna has not yet reached completion, we are confident that it will be ready as planned by December of this year.

Since the completion of its mechanical work in December last year, Kyari reported that 450,000 barrels of crude have been received by the Port Harcourt refinery for processing.

Calling for the collaboration of all those involved in rehabilitating, he urged that “we are all dutifully and faithfully serving our country. It is important for Nigerians to realize that we will complete this task progressively.”

The Senate Ad-hoc Committee is anticipated to conduct an on-site evaluation of work developments by visiting the Kaduna, Warri and Port Harcourt refineries in due course as per the statement.

In April, the refinery failed to produce even a single liter of petrol despite the two-week ultimatum. This outcome was unsurprising for many Nigerians who had been skeptical about the statement from its release.

The National Public Relations Officer of the Independent Marketers Association of Nigeria, Chief Ukadike Chinedu, reiterated on Monday May 20th that Nigerians could expect the Port-Harcourt Refinery with a capacity to refine up to 210,000 barrels per day would be operational by July-end as it had been postponed multiple times.

According to him, the progress would boost economic growth, lower petroleum product costs and guarantee sufficient provision.

Once more, July passed by without the Refinery being operational. Once again, Nigerians remained silent because they had not taken the initial statement seriously.

Nigerians did not respond positively to the announcement that the PH Refinery would start operations in four weeks.

For many Nigerians, the promise of refinery operation has turned into a repetitive and empty celebration. Claims that the Port Harcourt, Warri or Kaduna refineries will finally function have become commonplace clichés over time. Since taking power from PDP – which dominated for 16 years- in 2015, APC made assurances of refurbishing and relaunching various oil production centers like their counterparts but failed to deliver on its promises. The people are left with political subterfuge instead of tangible progress yet again.

On Thursday, when Mustapha, the National Operations Controller of IPMAN made an announcement that PH Refinery would commence operation after four weeks as a sign of government’s readiness to put an end to fuel importation; not many people received it with excitement. Majority expressed doubt considering past unfulfilled promises.

Opinions on the development are varied. While some outright ignored it as mere political discourse, others were willing to grant the government a chance despite past failed promises.

Those who doubted its potential and dismissed it as mere political rhetoric likened it to a familiar campaign promise made by politicians, wherein they pledge to construct bridges where no river flows.

Nonetheless, individuals who are inclined to give the government a chance believe that even somebody with deceitful tendencies can have an epiphany and choose honesty. They maintain that perhaps this time around, the authorities may have resolved to adopt improved practices and act in accordance with moral principles.

Alhaji Yerima Shettima, the president of Arewa Youth Consultative Forum (AYCF), is among those advocating for Nigerians to trust and support the government this time around.

He expressed a desire to maintain optimism for the current situation, but acknowledges that it’s understandable if others don’t trust the government’s assurances. This is due to past promises regarding the same refinery project, which ultimately failed to yield any positive outcomes.

According to Obasanjonews.com, he expressed his concerns regarding the promise and stated that the government has a history of making promises but not following through. Therefore, even if this promise is sincere, many people may still doubt its credibility.

However, my anticipation is that this account will differ because it’s not sustainable to assert one thing today and then retract tomorrow.

If you keep doing that, you will constantly be in a defensive position as there is always the desire to respond and offer assurances without any concrete plans for fulfilling them.

He cautioned the government to communicate truthfully and genuinely with Nigerians, emphasizing that intentionally deceiving them will incite their rage, which would be detrimental to society.

If the government continues to deceive citizens regarding the refinery, their frustration will only increase. Therefore, I believe it is imperative for them to honor their commitment this time around.

“I belong to those who have faith that things will eventually work out, as I am consistently optimistic and hold a strong conviction that there is always light at the end of every tunnel. Therefore, my suggestion would be for them to reassess themselves and adopt more transparent behavior towards Nigerians.” he expressed.

He observed that the gravity of the situation required the government to take all necessary measures to ensure smooth functioning of vital facilities like refineries throughout the country.

The advice he gave was that leaders should refrain from making excuses as they were fully aware of the situation when taking office.

The present time calls for a collective realization that the situation is dire and demands action from both citizens and government, bearing in mind that authorities were already aware of the issue prior to assuming office.

“He submitted that our role is to assist them and encourage their honesty with Nigerians, in order for all of us to endure this challenging period.”

However, Nze Ezeocha – a journalist and public affairs analyst – finds no cause for celebration in the latest commitment.

Last year, the Minister of State for Petroleum, Heineken Lokpobiri assured Nigerians that it would commence operations before Christmas was noted.

After Christmas came and went, we reminded them of their promise. They provided Nigerians with a new date that also failed to materialize.

We have once again received a pledge regarding the refinery, but this is not the first time. The NNPCL and Ministry of Petroleum Resources have made similar statements on three previous occasions about the PH Refinery becoming operational within weeks; however, these were empty promises that ultimately failed to deliver any tangible results.

In my opinion, this most recent promise is likely to end up like the ones before it. The conflict between NNPCL and Dangote Refinery serves as evidence of what could happen.

Dangote insists that it has not received sufficient crude from the NNPCL, and Nigerians are curious about the nature of their agreement.

Dangote requested that the NNPCL should enforce a policy requiring IOCs to sell their crude exclusively to him. Was there not sufficient planning done by Dangote beforehand regarding his acquisition of crude prior to establishing the refinery?

According to Obasanjonews.com, he stated that it is imperative for the government of Nigeria to be transparent and honest about the oil refining process in order to benefit all citizens. The current situation appears ambiguous and misleading.

Dr. Pogu Bitrus, the President of the Middle Belt Forum (MBF), concurs with Ezeocha’s viewpoint.

He expressed his opinion that the promise was unlikely to yield any results as he perceives that Nigerians have not changed their attitude. He further cautioned against raising hope around this promise, so as to prevent unnecessary emotional distress among them.

Everything is used for propaganda and politicization. Even when the Port Harcourt Refinery is not fully on course, the President does not have to tell us it is. It’s time for this government to implement a new approach towards governance.

According to him, instead of deceitfully gaining political mileage from Nigerians in times of trouble, the honest approach would be to reveal the factual state of affairs.

He added that deceiving the public is futile and honesty should be valued instead of seeing lies as a political tactic. Continuing to use this approach will only bring shame upon themselves, resulting in losing trust from their fellow Nigerians.

IK Onodi, a legal practitioner and public commentator, also expressed doubts that the refinery could be operational within two weeks.

He stated that similar assurances were given previously, yet they never materialized. Therefore, he would withhold his belief until there is tangible evidence of the refinery effectively refining.

He believes that actions speak louder than words and reminds us of last year’s promise for the Dangote Refinery to start production by July which was not fulfilled.

The Dangote Refinery has not refined any crude oil in approximately nine months, starting from July of last year up to now.

The assurance that the Port Harcourt Refinery and other refineries will start operating soon has been given to us repeatedly.

“If I were the government, I would refrain from making any announcements until production begins at the refinery. Once it is operational, only then will I disclose to Nigerians that this product has been sourced from either PH, Warri or Kaduna Refinery – as seeing is believing.”

Chief Dipo Lanre, an independent petroleum marketer, is doubtful that the refinery will be operational within four weeks as promised.

Although he didn’t completely reject the idea, he expressed doubt about its feasibility given past promises that failed to produce any favorable outcome.

May this time around, I fervently hope that the promise will be fully realized and not suffer a fate similar to past commitments surrounding the refinery.

During Olusegun Obasanjo’s time in office, it is worth recalling that the Port Harcourt Refinery was sold to Mike Otedola and Aliko Dangote. However, they eventually received a refund for their payment.

Following the return of that money to Otedola and Dangote, there have been numerous promises but no actual progress towards reopening the refinery. Regrettably, it has become a scourge on Nigerian society.

The political manipulations surrounding the refinery have exhausted me. The facility has been a pawn in politicians’ games since Obasanjo’s reign. Additionally, what exactly is a refinery?

“Why is it such a challenge to construct a refinery? We could have built at least four since the return of democratic governance in 1999 if we had been genuinely committed.”

He further warned Obasanjonews.com, “Let us not engage in another episode of deceit with the refinery as we have been doing for nearly 25 years.”