PETROAN Criticises NNPCL Over Delay in Privatising Port Harcourt Refinery

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has expressed deep dissatisfaction with the Nigerian National Petroleum Company Limited (NNPCL) over its decision to retain full ownership and control of the Port Harcourt Refinery, despite years of underperformance and massive government spending on its rehabilitation.

In a statement issued on Monday, PETROAN President, Dr. Billy Gillis-Harry, argued that the failure to privatise the refinery or involve more private sector operators has continued to undermine Nigeria’s quest for self-sufficiency in petroleum refining. He described the current ownership structure as inefficient, opaque, and unsustainable in the face of mounting fuel import bills and rising demand.

“After billions of dollars spent on turnaround maintenance and rehabilitation efforts, we are still in the dark on when the refinery will fully resume operations, let alone operate at optimal capacity,” Gillis-Harry said. “If this asset were in private hands or even operated under a public-private partnership, Nigerians would have been seeing better outcomes by now.”

The Port Harcourt Refinery, one of Nigeria’s four state-owned refineries, has undergone several repair and rehabilitation contracts in the last two decades, yet remains largely non-functional. The federal government announced in 2021 that it had approved a $1.5 billion revamp of the facility, with expectations that it would resume operations by 2023. However, as of mid-2025, full operations have yet to materialise.

Gillis-Harry emphasised that the persistent delays not only question the accountability of the NNPCL but also cast doubt on the government’s commitment to reforming the oil sector. According to him, refining crude locally is a matter of economic urgency, given the pressure on Nigeria’s foreign reserves due to the continuous importation of refined products.

He further criticised the NNPCL’s monopoly in managing national assets like the refinery, calling it counterproductive and resistant to innovation. “We cannot continue in this cycle where public institutions cling to control but deliver very little. It’s time the Port Harcourt Refinery becomes a beacon of efficiency under a model that prioritises performance and accountability,” he added.

Industry experts and civil society groups have echoed PETROAN’s concerns, noting that government control has done little to revive the refinery or improve local refining capacity. Many have pointed to the Dangote Refinery and modular refineries emerging in some states as evidence of what private capital and innovation can achieve when given the room to operate.

Economic analyst Femi Akintunde noted that Nigeria’s continued reliance on imported petroleum products places unnecessary strain on the naira and domestic pricing. “Until we decentralise refining operations and invite credible private investment into existing assets like the Port Harcourt Refinery, the downstream sector will continue to suffer,” he said.

The calls for privatisation or partial concession of the refinery come amid broader efforts by the federal government to reform the energy sector and attract more private capital. While the Petroleum Industry Act (PIA) was expected to unlock these opportunities, stakeholders argue that the pace of implementation has been slow, and key decisions like refinery privatisation are still pending.

In response to the criticisms, a source within the NNPCL who preferred anonymity defended the company’s current stance, stating that the ongoing rehabilitation is in its final stages and that the company plans to test-run key production units before the end of the year. “We are focused on delivering a functional refinery and will explore operational models that best serve national interests,” the source said.

However, PETROAN insists that such assurances have become repetitive without visible results. The association urged the National Assembly and other regulatory bodies to initiate a performance audit and enforce accountability on the timeline and outcome of the refinery’s rehabilitation.

“The Nigerian people deserve transparency and results. We need to stop treating national assets as sacred cows that are immune to market forces or scrutiny. Let’s bring in those who can run it better, whether through concession, management contract, or outright divestment,” Gillis-Harry concluded.

As Nigeria grapples with high fuel costs, forex scarcity, and infrastructure deficits, the debate over who should manage the country’s refining assets is becoming increasingly urgent. PETROAN’s position adds to growing pressure on the NNPCL and the federal government to embrace reform not only in word but in practice.