Prolonged Shutdown of Port Harcourt Refinery Raises Fresh Concerns Over $1.5 Billion Rehabilitation

The Port Harcourt Refining Company (PHRC) has remained shut for over a month, sparking renewed concerns about Nigeria’s refinery rehabilitation efforts. The Nigerian National Petroleum Company Limited (NNPCL) had initially stated the facility would undergo a 30-day maintenance shutdown starting May 24, 2025. However, operations remain suspended with no official update provided.

PHRC was declared partially operational in November 2024 by then-NNPCL Group CEO Mele Kyari, following years of dormancy. At the time, the refinery was said to be running at 70% of its 60,000 barrels-per-day capacity, producing diesel, kerosene, fuel oil, and premium motor spirit (PMS).

Despite the planned maintenance, petroleum marketers confirm that the facility remains idle more than a month later, fueling anxiety over potential fuel shortages and price increases. Retailers in Eleme and Okrika, communities near the refinery, have voiced concern over the continued shutdown.

“We are worried about the potential shortage of fuel and the attendant price hikes,” a fuel dealer in Eleme said. “We urge NNPCL to ensure supply remains stable during this period.”

In a statement issued by former NNPCL Chief Corporate Communications Officer Olufemi Soneye, the company said the maintenance was part of a scheduled sustainability assessment, aimed at ensuring long-term performance. Soneye also stated that NNPCL was collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to maintain transparency and efficiency throughout the process.

However, the refinery’s prolonged inactivity has reignited scrutiny over the $1.5 billion allocated for its rehabilitation — a cost now under investigation by the Economic and Financial Crimes Commission (EFCC). The EFCC is probing alleged mismanagement of nearly $3 billion across Nigeria’s three state-owned refineries: PHRC, Warri Refining and Petrochemical Company, and Kaduna Refining and Petrochemical Company.

According to Nigeria News 247, the investigation has uncovered N80 billion in the account of a dismissed refinery MD, raising serious questions about fund misuse. The probe reportedly implicates former NNPCL CEO Mele Kyari and 13 other ex-senior executives.

“We are not surprised by the refinery’s shutdown,” said a source familiar with the EFCC investigation. “There has been a consistent lack of transparency in how these refineries are managed. We hope the investigation brings clarity.”

As investigations continue and operations remain suspended, the uncertainty surrounding PHRC threatens to undermine public confidence in Nigeria’s refinery rehabilitation agenda.