Barely two months after the September completion deadline flop, the Nigerian National Petroleum Commission (NNPC) has explained why it could not deliver the much-awaited Port Harcourt Refinery Company.

In an interview (with The Punch) on Monday, the NNPC Chief Corporate Communications Officer, Olufemi Soneye, said the company encountered risks and challenges while carrying out the rehabilitation, being a brownfield project.

He noted that the NNPC began the commissioning of critical equipment and processing units after the mechanical completion in Nigeria.

“You may recall that mechanical completion of the PHRC revamp was successfully achieved several months ago, marking a significant milestone in the project. Following this, we began the commissioning of critical equipment and process units.”

“However, as is common with brownfield projects of this scale and complexity, we encountered unforeseen risks and challenges,” he stated.

Nonetheless, he told (The Punch) that the issues were resolved and commissioning activities have resumed.

Soneye stressed that work is being carried out to ensure the project’s completion.

“These issues have since been effectively resolved, and commissioning activities have resumed.”

“Work is being carried out around the clock to ensure the successful completion of this critical project,” he told our correspondent.

Asked if there is any timeline for the completion of the project, he replied, “Shortly.”

It was observed that the NNPC desisted from giving new deadlines for the delivery of the refinery, having failed to meet its deadlines seven times.

The moribund Port Harcourt refinery is one of three owned by the Federal Government and managed by the NNPC.

Nigerians have been hopeful that the cost of fuel could crash if the country refines its crude and ends the import of refined products.

The NNPC said last week that it would continue to import fuel, saying it was not the sole off-taker of petrol at the Dangote refinery.

The refinery, situated in Nigeria’s oil-rich Niger Delta region, has been in operation since 1965, but later became moribund for several years.

In March 2021, the Nigerian government acquired a $1.5bn loan for the renovation and modernisation of the refinery, but the contractor handling the project has yet to announce its completion.

It was gathered that promises made to Nigerians by the Federal Ministry of Petroleum Resources and the NNPC about the refinery have continued to hit brick walls.

After the failure of the sixth deadline in early August, the then Chief Financial Officer of the NNPC, Umar Ajiya, said the refinery would commence operations in September 2024.

However, September ended without a word from the NNPC about the refinery, and Nigerians have been left in the dark since almost two months ago.

Recall that the contractor overseeing the rehabilitation of the Port Harcourt refinery, Maire Tecnimont SPA, refused to disclose the completion date for the project, despite a formal request from a human rights lawyer, Femi Falana.

Apparently baffled by the delay in the completion of the project, Falana had filed an official request under the Freedom of Information Act, seeking clarity on the date set aside for the project completion.

In response, Maire Tecnimont’s legal representative, Muyiwa Ogungbenro, a partner at Olajide Oyewole LLP, sent a letter to Falana in early October, declining to reveal the information.

Ogungbenro stated that the Managing Director of Maire Tecnimont SPA, as part of an independent private contractor, is not obligated to disclose such information under the FOI Act.

“We are counsel to Maire Tecnimont SpA, and we have our client’s instruction to respond to your letters dated 17 and 24 September 2024 requesting information on the contract between our client and Nigerian National Petroleum Company Ltd.

“Our client is a private company. Being a private independent contractor, our client is not a company in which any government has a controlling interest, and does not provide public services, functions or utilise public funds for them to be bound by the obligations in the Freedom of Information Act.

“On this ground, our client regrettably cannot provide the information you have requested,” Ogungbenro declared.

Since then, information about the refinery has been kept from the public, whose hope for cheaper petrol lies in the facility.

From December 2023, NNPC had been giving Nigerians different dates, assuring them that the refinery would begin the sale of refined products soon, having attained mechanical completion.

In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated categorically that the refinery would come into operation in early August. He had said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former President Muhammadu Buhari’s administration last year.

When he appeared before the Senate in July, Kyari boasted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.

“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna; but that of Port Harcourt will commence production early August this year.”

However, the promise was not fulfilled in August which was the sixth postponement.

Though the NNPC said it was on course, the refinery has yet to commence operations even as the fourth quarter of the year nears the end.

Recall that the 210,000 barrels per day refinery was said to have reached what the NNPC called mechanical completion of rehabilitation work in December. It stated that the facility would start refining 60,000 barrels of crude oil daily after last year’s Christmas break.

Later in January, Kyari said the refinery was being tested and would be ready by the end of the first month.

During the second month of the year, the Shell Petroleum Development Company of Nigeria Limited completed the supply of 475,000 barrels of crude oil to the facility, raising the expectations of marketers that production would soon start.

This came a few weeks after the NNPC said in January that it was seeking to engage reputable and credible operations and maintenance companies to run the refinery.

In mid-March, Kyari said the Port Harcourt refinery would commence operations in two weeks, April.

“We are serving this country with honour and dignity. And we will make sure that the promises we make on the rehabilitation of these refineries will take place,” Kyari stated after he appeared before the Senate Ad-hoc Committee investigating the various turnaround maintenance projects of the country’s refineries.

As the April deadline elapsed, independent petroleum marketers told (The Punch) that the facility would begin production by the end of July.

Commenting on this then, NNPC’s spokesman, Soneye, said that regulatory approvals from international bodies were the only impediment stalling the operational commencement of the refinery.

Credit: The Punch

Fela Durotoye, a Nigerian public speaker, says he worked in the administration of President Bola Tinubu for just six months without receiving a salary.

In October 2023, Tinubu appointed Durotoye as senior special assistant on national values and social justice.

Following Tinubu’s appointment of Daniel Bwala as special adviser on public communications and media, some Nigerians on social media criticised the president for appointing a plethora of media aides without considering the cost of governance.

In a 13-man list that went viral on social media, Durotoye was named as one of the media aides to the president.

In an opinion piece published on Monday, Durotoye clarified that his appointment as aide to the president ended in March 2024.

He added that throughout the six months of his appointment, he didn’t receive any salary, allowance, or upkeep as a government official.

“Like many other issues in the public discourse, social commentary often has the tendency to overgeneralise; and broad assumptions may sometimes lead to errors of misconceptions, misstatements and misinformation,” Durotoye said.

“One of such errors is in a recent case study that went viral on social media regarding the current media team of the president, where my name was listed as one of the president’s media aides. Unfortunately, this statement needs to be updated to accurately reflect the current media team of the president.”

“For clarity, I served briefly in the role of Senior Special Assistant to the President on National Values and Social Justice (SSA-NVSJ) for a tenure of six months, from October 2023 to March 2024.”

“When I was invited to serve in this administration, I expressed, as a condition for accepting the call, my desire to NOT receive a salary from the government, as I considered this to be my service to my nation.”

“When I finally accepted the role in October 2023, it was on the condition that I would not receive any salary or allowances. During my six-month tenure, I did not accept any government funds for my service, expenses, or upkeep.”

“I rented my apartment and took my personal car to Abuja. My utility cost, fuel cost and upkeep were all borne by me and I never requested a reimbursement from the government for any expenses I incurred. Everything I contributed—time, effort, and resources—was paid for by me and my family.”

Simon Manley, the UK’s permanent representative to the World Trade Organization (WTO) and United Nations (UN) in Geneva, says British investors in Nigeria have expressed concerns over harmful business practices in the country.

Speaking during Nigeria’s trade policy review in Geneva, Manley highlighted that British investors are also worried about the involvement of state-owned enterprises in market-distorting practices.

The British government official welcomed Nigeria’s efforts “on challenging, but necessary, economic reforms.”

“In particular, we have been pleased to see the work done to improve the monetary policy environment and the removal of fuel subsidies,” Manley said.

“However, to be honest Permanent Secretary, we would like you to go even further and faster. For example, there are concerns around the impact of state-owned enterprises on the business environment.”

“As the Secretariat noted in its report, as of 2022 around 40 state-owned enterprises were operating in key sectors like energy.”

“These state-owned enterprises, to be honest, often employ market-distorting practices and benefit from unfair competition in our view.”

“Other concerns that British businesses investing in Nigeria have raised include examples of harmful subsidies, forced technology transfer, discriminatory enforcement of competition policy, and complex regulatory barriers.”

“And we have indeed picked up on some of those issues and concerns in our Advanced Written Questions.”

“So we would encourage our Nigerian colleagues to address these harmful practices in order to boost investment, boost trade, improve its business environment and ultimately increase Nigerian prosperity.”

• ‘THE AFRICAN CONTINENTAL FREE TRADE AGREEMENT ALREADY BENEFITTING NIGERIA’

Manley said the African Continental Free Trade Agreement (AfCFTA) is already benefiting Nigeria’s economy and business environment.

For future growth, he said they are looking forward to Nigeria implementing the digital trade protocol of the AfCFTA.

“We congratulate Nigeria on commencing commercially meaningful trade under the Agreement by joining the Guided Trade Initiative on 16 July,” he said.

“We, in the UK, are proud to have supported the Nigeria AfCFTA Coordination Office on reaching this milestone and we are currently supporting the implementation of the Digital Trade Protocol flowing from the Agreement, which is an ambitious and comprehensive framework designed to facilitate digital trade and unlock the potential of the digital economy right across the continent.”

“According to the joint World Bank-WTO Policy Note last year on digital trade in Africa, if African countries were to improve their digital regulatory environment to that of the best on the continent, trade costs could fall by 17% in goods and 25% in business and professional services.”

“So, we look forward to Nigeria implementing that Digital Trade Protocol to the benefit of its businesses, its consumers, and its future growth.”

As a co-chair of the informal working group on gender, Manley also lauded Nigeria’s commitment to empowering women economically.

“As a little practical example, I was delighted to hear the recent story of Madam Chinwe Izenwa. A 73-year-old female entrepreneur and CEO of LeLook, a bags and fashion accessories company, who was the first Nigerian, I understand, to use the AfCFTA’s Guided Trade Initiative,” he said.

“She has even given herself the nickname 0001, as she holds the first Agreement certificate of origin.”

“An excellent example of Nigeria’s action on women’s economic empowerment, delivering real-world benefits.”

Manley commended Nigeria’s proactive engagement in the WTO, describing the country as a friend to the multilateral system.

Acknowledging the leadership of Ngozi Okonjo-Iweala, the WTO director-general, he described her as the organisation’s most renowned Nigerian.

• ‘NIGERIA HAS BEEN A STRONG ALLY IN PLURI-LATERAL NEGOTIATIONS’

Manley also commended Adamu Abdulhamid, chair of the WTO trade policy committee, for his significant contributions.

He stated that the organisation would particularly acknowledge Nigeria’s efforts in dispute settlement, as the focal point for the African Group, and in fisheries.

“Nigeria has been a strong ally in pluri-lateral negotiations, whether on Services Domestic Regulation, Investment Facilitation for Development, and e-commerce,” he said.

“While we may not always see eye to eye, Nigeria has, rightly, kept our feet to the fire in ensuring that those pluri-lateral outcomes are balanced for all Members.”

“Thanks to Nigeria’s input, we can be confident that the agreements reached are a fair compromise of ambition, commercial value, and inclusivity.”

“We were glad to have reached a stabilised text on e-commerce this summer. We welcome your confirmation, Permanent Secretary, this morning that consultations are ongoing back in Nigeria and we hope to count you as one of the Agreement’s founding parties as we move swiftly forward towards legal incorporation.”

Manley encouraged Nigeria to continue its reform efforts, adding that “Only the things for which you have struggled will last.”