The Port Harcourt refinery is on track to begin operations this August, with an expected daily output of 10 to 12 million liters of petrol, according to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
This development is anticipated to significantly boost the availability of petroleum products across Nigeria.
In an interview on Thursday, August 8, IPMAN’s National Operations Controller, Zarma Mustapha, confirmed that the refinery is gearing up to meet the August deadline.
He emphasized that the refinery will operate independently, selling petrol at prevailing market prices, with minimal government intervention.
“There is an understanding that the Port Harcourt refinery will perform independently, selling at market prices to recover costs. This shift from government control is expected to enhance the supply of Premium Motor Spirit (PMS), contributing between 11 and 15 million liters daily,” Mustapha stated.
The refinery, operating at its full capacity of 210,000 barrels per day, is projected to stabilize the supply-demand dynamics of PMS in the country.
Mustapha expressed confidence that the August timeline is realistic and that the refinery will deliver all necessary products at optimal capacity.
Addressing the potential impact on petrol prices, Mustapha suggested that while the refinery could help lower costs, it would largely depend on the pricing strategy adopted by the operators.
The refinery, which secured a $1.5 billion loan in 2021 for maintenance, will need to recover its operational costs, including the procurement of crude oil at international prices.
Nigeria, despite being a major oil producer, has struggled with refining its crude oil domestically.
The country’s four state-owned refineries, located in Port Harcourt, Kaduna, and Warri, have been largely non-functional, forcing reliance on imported refined products.
This situation has had a profound impact on the Nigerian economy.
Mele Kyari, the Group CEO of the Nigerian National Petroleum Corporation (NNPC), recently reiterated that the Port Harcourt refinery will begin operations this August, with the other three refineries in Kaduna and Warri expected to start by mid-2025.
This commitment is part of the government’s broader strategy to revitalize domestic refining capabilities and reduce dependence on imports.
However, skepticism remains, as previous deadlines for resuming refinery operations have been missed.
This latest announcement will be closely watched to see if it finally delivers on the long-awaited promise of a functional refinery in Nigeria.
