PETROAN, NNPC in talks over P/Harcourt refinery’s acquisition

 The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is currently talking with the Nigerian National Petroleum Company Limited on the resuscitation and acquisition of the Port Harcourt Refinery in River State, Nigeria. Its President, Dr. Billy Gillis-Harry, who confirmed this in an interview with Daily Trust on Thursday, explained that his group’s interest […]

 The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is currently talking with the Nigerian National Petroleum Company Limited on the resuscitation and acquisition of the Port Harcourt Refinery in River State, Nigeria.

Its President, Dr. Billy Gillis-Harry, who confirmed this in an interview with Daily Trust on Thursday, explained that his group’s interest in acquiring the ailing refinery was premised on boosting refining capacity of the country’s indigenous refineries.

Apart from ensuring low prices of petroleum products in Nigeria, Harry said breathing life into the Port Court Refinery would oil wheel of the country’s economy and support the Renewed Hope Agenda of President Bola Tinubu.

He hinted that the group’s co-investors from Ukraine, Georgia have pledged enormous support to give the project the desired attention for value addition in the country.

His group, he said, needed about $2billion to kick-start the project, while it is working round the clock to concretize the arrangement to sign Letter of Interest with the co-investors.

He expressed optimism about the move to bring back the refinery to life, saying his group’s desire has always been to be an agent of impactful change in the country’s oil value chain.

He expressed his group’s support for the Dangote Refinery, saying the company is doing well in adding substantial value to the country’s oil industry.

He vowed to continually deepen such support and encourage all other private refineries to come on stream with a view to bringing about reflective prices, healthy competition and multiple value addition for the country.

In its 2025 sector review and 2026 outlook, the group disclosed that Nigeria has spent N11.35 trillion on the turnaround of Port Harcourt, Warri, and Kaduna refineries over the past decade, but the facilities remain non-operational.

It noted that approved contracts include $1.5 billion for Port Harcourt and $1.48 billion for Warri and Kaduna combined, spurring probing by security agencies and legislative oversight bodies into allegations of mismanagement and malfeasance.

It emphasized the need for forensic audits and clear accountability frameworks to restore public confidence in sector investments.

“Over the past decade, massive public funds, reportedly around N11.35 trillion (equivalent to billions of dollars), have been expended on turnaround maintenance and rehabilitation of the four government-owned refineries (Port Harcourt, Warri, and Kaduna), yet the facilities largely remain non-functional or underperforming.

“Specific approved contracts include Port Harcourt Refinery: $1.5 billion. Warri & Kaduna Refineries combined: $1.48 billion. These significant outlays, coupled with the enduring non-operational status of the refineries, have prompted investigations by security agencies and legislative oversight bodies into allegations of fraud, mismanagement, and lack of accountability,” the review indicated.

The association noted that 2025 was a defining year for Nigeria’s downstream petroleum sector, shaped by regulatory reforms, leadership changes, refinery development efforts, and heightened competition between local refiners and petroleum importers.

It explained that these projects, once operational, are projected to complement the Dangote Petroleum Refinery and provide much-needed relief to the domestic petroleum market.

It added: “Cumulatively, over 30 refinery licences, largely modular and medium-scale, have been issued since the Petroleum Industry Act (PIA) came into effect, with about 23 refineries actively under development. When completed, these projects are projected to add over 850,000 barrels per day to Nigeria’s domestic refining capacity, complementing the Dangote Petroleum Refinery and reducing reliance on imports.”

The Naira-for-Crude policy, introduced to support local refining by allowing crude payments in naira instead of dollars, had strategic potential but faced implementation challenges, it observed.

According to the group, between 250,000 and 300,000 bpd of crude were allocated to domestic refineries under the scheme, easing foreign exchange demand and providing a framework for price stability. 

It disclosed that delays in allocation, pricing disputes, and limited participation challenged the policy from achieving its full potential.

It emphasized the need for improved transparency, timely allocation, and pricing alignment with a view to maximising the benefits of this policy in 2026.

While domestic refining saw growth in approvals and capacity planning, the shutdown of the Port Harcourt Refinery on May 24, 2025, the group highlighted persistent operational and structural challenges.

It lamented that in spite of the significant public funds invested in rehabilitation, the facility could not maintain continuous production.