Mele Kyari has officially announced that the commencement of operations at the Port Harcourt refinery is scheduled for December 2023. This revelation was made during a meeting with the Speaker of the House of Representatives, Tajudeen Abbas, on November 23. The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) emphasized that the rehabilitation of state-run refineries is underway, with the expectation that Nigeria will cease petrol imports by December 2024.
Kyari outlined the timeline for refinery operations, stating, “I can confirm to you that by the end of December this year, we will start the Port Harcourt refinery; early in the first quarter of 2024, we will start the Warri refinery and by the end of 2024, the Kaduna refinery will come into operation.”
He expressed confidence in the initiatives, including refinery rehabilitation, efforts by small-scale refineries, and the impending Dangote refinery, collectively contributing to Nigeria becoming a net exporter of petroleum products by 2024. Kyari asserted, “We will no longer be talking about fuel importation by the end of 2024. I am very optimistic that this will crystallize.”
In response, Tajudeen Abbass advocated for the privatization of refineries, highlighting that certain businesses are not suited for government management. He urged, “There is a need to make these refineries have multi-dimensional uses. If there is no crude oil, are there other activities that can make the workers active so that what they earn is deserved?”
Abbass emphasized the necessity of examining ways to reverse years of losses, suggesting privatization as a viable solution. He remarked, “One way to do so is to find a way to privatize these refineries. We have spent so much money and time deceiving ourselves that some businesses can be run by the government. In the case of the refineries, we have now realized that some sectors of NNPCL business can only be handled by the private sector.”
He pointed out that inefficiencies in the refineries would become more apparent with the imminent completion of the Dangote refinery, introducing competition. Abbass expressed concerns about the inadequacies that may be exposed and stressed the importance of preparing for increased competition.
The National Assembly had previously announced in August 2023 that it would investigate the alleged N11.3 trillion expenditure by the Federal Government on Nigeria’s refineries’ turn-around maintenance between 2010 and 2020. The House of Representatives Committee Chairman on Public Accounts expressed worry about the dismal state of Nigeria’s refineries despite substantial funds allocated for maintenance over the past decade.
It is noteworthy that the NNPCL plans to supply the Dangote oil refinery, with a capacity of 650,000 barrels per day, with up to six crude oil shipments in December for testing purposes. These shipments, totaling 200,000 barrels per day, are part of a one-year agreement between NNPCL and Dangote refinery.
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