PETROAN spokesman opposes NNPC’s retention of P’Harcourt refinery

The Nigerian National Petroleum Company Limited’s (NNPC) decision to retain ownership of the Port Harcourt Refinery has sparked strong reactions, particularly from Joseph Obele, the National Publicity Secretary of the Petroleum Products and Retail Owners Association of Nigeria (PETROAN).

Obele, a prominent stakeholder in Port Harcourt and a university lecturer, voiced his strong disagreement with NNPC’s recent stance, stating that privatisation would serve the refinery and the host community far better than continued government control.

“This isn’t good news. Plans to sell the Warri and Kaduna refineries while keeping Port Harcourt under NNPC management are concerning, given NNPC’s history of corruption and favouritism,” Obele said in an interview with our correspondent.

He pointed to companies like Indorama Petrochemical as examples where private ownership has led to improved community engagement and operational success, contrasting that with the NNPC’s long-standing inefficiencies.

🛠️ NNPC’s Track Record Under Fire

According to Obele, the NNPC has repeatedly fallen short of expectations in its management of government-owned refineries. The result, he said, has been persistent fuel scarcity, price hikes, and widespread economic hardship.

“The NNPC has consistently disappointed Nigerians with its inefficient management of refineries… Its track record of corruption, inefficiency, and neglect is well-documented. It’s time for a change,” he stressed.

✅ Why Privatisation Is the Better Option

Obele laid out a detailed case for the privatisation of the Port Harcourt refinery, citing several potential benefits:

• Enhanced efficiency and productivity

• Increased private-sector investment and capital injection

• Technology transfer and modernisation

• Job creation and economic growth in the host community

• Reduction in bureaucracy and corruption

• Better accountability and transparency

• Improved global competitiveness

• Optimal resource management

He added that these advantages would far outweigh the costs and urged the federal government to reconsider its position.

🗣️ A Call to President Tinubu

Obele appealed directly to President Bola Tinubu, calling on him to intervene and ensure the Port Harcourt refinery is privatised in the interest of national progress and transparency.

“The community is ready to receive a private firm taking over the refinery with the highest sense of hospitality and cooperation. We assure any private firm of a warm welcome and collaborative working relationship to ensure the refinery’s success, which will in turn benefit our community and the nation,” he stated.

🏗️ NNPC Defends Its Position

In contrast, the NNPC, through its Group Chief Executive Officer, Bayo Ojulari, has maintained that selling the Port Harcourt Refining Company is not an option. The company insists it is committed to completing a “high-grade rehabilitation” of the plant and retaining ownership.

Ojulari revealed this during a company-wide town hall meeting at the NNPC Towers in Abuja, clarifying that the decision was based on ongoing technical and financial reviews of the Port Harcourt, Warri, and Kaduna refineries.

He added that a previous decision to operate the Port Harcourt refinery before full rehabilitation was “ill-informed and sub-commercial”, indirectly indicting past NNPC leadership.

“Although progress is being made on all three [refineries], the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery. Thus, selling is highly unlikely, as it would lead to further value erosion,” Ojulari stated.

🛑 Refinery Still Shut Down

The Port Harcourt refinery, which was shut down on May 24 for a planned one-month maintenance, has remained closed two months later, raising questions about the effectiveness of NNPC’s rehabilitation process.

Meanwhile, Dangote Group President, Alhaji Aliko Dangote, recently remarked that Nigeria’s refineries may never work again, despite swallowing as much as $18 billion in rehabilitation funds over the years.