New year, old refinery problems
The invitation extended by the Nigerian National Petroleum Company (NNPC) Ltd to former President Olusegun Obasanjo to tour the rehabilitated Port Harcourt Refinery signals a pivotal moment in the ongoing discourse surrounding Nigeria’s troubled refineries. The invitation comes in response to Obasanjo’s recent comments on Channels Television, where he cast doubt on both the refinery’s functionality and NNPC Ltd’s ability to effectively manage such assets.
This call to Obasanjo, who oversaw Nigeria’s oil sector for much of the 2000s, underscores the nation’s desire to demonstrate progress in rehabilitating its ageing refineries. The former president’s criticisms are not without foundation. His revelation that the NNPC rejected a $750 million offer from Aliko Dangote in 2007 to manage the Port Harcourt and Kaduna refineries speaks to a long-standing history of mismanagement and missed opportunities in the oil sector. His frustration with the continued underperformance of the refineries, despite billions of dollars spent, is shared by many Nigerians who have watched with growing disillusionment as successive governments failed to turn around these critical assets.
However, the NNPCL’s invitation to Obasanjo suggests a shift in approach. The company’s management insists that the Port Harcourt Refinery has undergone more than just the typical turnaround maintenance (TAM). Instead, they argue that a comprehensive rehabilitation aimed at achieving world-class standards has been undertaken. This approach marks a significant departure from previous attempts to merely maintain or patch up the facilities, offering hope that genuine progress may have been made.
While it is important to acknowledge these efforts, the issue at hand is not simply about the physical condition of the refineries, but rather about the management structures and the broader systemic issues within Nigeria’s oil industry. NNPCL’s transformation from a loss-making government corporation to a profit-driven global energy company is an ambitious shift. Yet, many will remain sceptical until this transformation translates into tangible, measurable outcomes, especially in terms of refinery output, national energy security, and economic sustainability.
Obasanjo’s criticisms point to a deeper malaise that has plagued the Nigerian oil sector for decades: a chronic failure to translate resources into results. The rejection of Dangote’s offer is not an isolated incident but rather part of a broader pattern of inefficiency and resistance to privatisation or strategic partnerships that might inject much-needed expertise into the system. It is telling that the NNPCL’s leadership continues to defend its track record, reiterating its commitment to transparency and energy security, while dismissing reports of planned crude oil supply disruptions to Dangote’s refinery as “falsehoods.”
This exchange between the former president and NNPCL’s management highlights the stark divide between Nigeria’s aspirations and its realities. On one hand, the NNPCL is striving to position itself as a forward-thinking, profit-driven energy company capable of modernising Nigeria’s energy infrastructure. On the other hand, the historical baggage of mismanagement, political interference, and a lack of transparency remains a significant hurdle to progress.
The challenge for NNPCL is not just to showcase the results of the Port Harcourt Refinery’s rehabilitation, but to prove that it has learned from the mistakes of the past. For too long, Nigerians have been subjected to empty promises and underperforming refineries that drain resources without delivering the hoped-for benefits. Transparency, accountability, and a willingness to embrace bold reforms, including potential public-private partnerships, will be key to moving beyond this cycle of failure.
The invitation to Obasanjo represents an opportunity to build bridges between the past and present, allowing for a candid exchange of ideas and insights. However, the real test for NNPCL lies in its ability to demonstrate that the new vision for the refineries is not just a rhetorical shift but a tangible improvement that will benefit Nigerians for generations to come. The eyes of the nation are watching, and the expectations are high. The time for progress is now – but it must be backed by sustained, meaningful change.
