The Port Harcourt Refining Company (PHRC) Ltd in Rivers State has officially commenced crude oil processing, marking a significant milestone in Nigeria’s efforts to boost local refining capacity.
This development was announced on Tuesday by the Chief Corporate Communications Officer of the Nigerian National Petroleum Company Limited (NNPCL), Femi Soneye.
According to Soneye, the refinery’s resumption signals a “new era of energy independence and economic growth.” He congratulated President Bola Ahmed Tinubu, the NNPC Board, and Group Chief Executive Officer Mele Kyari for their leadership in delivering the long-awaited project. Truck loading operations at the refinery are also set to begin immediately, with efforts underway to restore operations at the Warri Refinery.
This milestone comes after multiple missed deadlines for the refinery’s rehabilitation, which began following the Federal Government’s approval of $1.5 billion for repairs in 2021. Initially shut down in 2019, the plant is one of Nigeria’s largest refineries. Previous assurances that the facility would resume production in September 2023 and April 2024 fell through before the recent breakthrough.
Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri, during a recent inspection, reiterated the government’s commitment to increasing Nigeria’s refining capacity. Kyari added that the PHRC rehabilitation, alongside similar efforts at other refineries, is key to making Nigeria a net exporter of petroleum products by 2024.
Nigeria, despite being one of the world’s largest crude oil producers, has long relied on costly imports for refined petroleum products due to inadequate local refining. This dependency led to significant foreign exchange outflows, exacerbated by fuel subsidies.
The commencement of operations at the Port Harcourt refinery follows the Dangote Petroleum Refinery’s production of diesel and aviation fuel in September 2024. With both facilities now operational, there is hope that fuel prices, which skyrocketed after the subsidy removal, will stabilize.
Nigerians are optimistic that the combined output of the Port Harcourt and Dangote refineries will reduce the economic strain caused by expensive fuel imports, signaling a brighter future for the energy sector.
