From Tony John, Port Harcourt
The communities hosting the Port Harcourt Refinery in Rivers State are not happy with the recent shutdown of the refinery for maintenance by the Federal Government.
These communities, Eleme and Okrika, from two different local government areas, alleged that the temporary shutdown for 30 days maintenance of the refinery is “a recipe for suspicion.”
Sunday Sun gathered that the host communities since the refinery started operation around December 2024, have been loading only Dual Purpose Kerosene (DPK) and Automotive Gas Oil (AGO).
But Premium Motor Spirit (PMS) portal , according to sources, was only open to the Nigerian National Petroleum Company Limited (NNPCL) retail marketers only. But they had PMS before the latest development.
Stakeholders at the refinery confirmed that all the three basic products: PMS, AGO and DPK were at the Port Harcourt Refinery, but the management said only the NNPC-rated marketers should be loading the PMS.
It was also revealed that while there was availability of PMS, DPK and AGO products at the refinery, they (management ) were loading maximum of 17 trucks and minimum of three trucks per day.
However, the loading, according to an insider, was not everyday.
The source also revealed that, sometimes, they (management) go on break for like four days before loading resumes.
Also, they were only dispensing to NNPCL filling stations, which was more of AGO.
Disturbed by the shutdown, the host communities have expressed fear that there is an undertone behind the decision of the Federal Government on the Port Harcourt Refinery.
Speaking under the aegis of Host Community Bulk Petroleum Retailers of Port Harcourt Refinery, the critical stakeholders raised the alarm that the Federal Government wants to return the landlords to several years of hardship, abandonment, economic hardship, and social retrogression.
The communities alleged that it was an orchestrated ploy practice monopoly by a private refinery.
Executive members of the group, in a recent media briefing in Port Harcourt, insisted that the 30 days timeline for maintenance of the refinery must not be exceeded.
The group, which commended President Bola Tinubu for his commitment to revamping Nigeria’s neglected refineries, demanded for immediate removal of the Refinery Coordinator, Mr Bayo Aderenle, accusing him of sabotaging the efforts of the president’s reform agenda.
Also, the group requested for consistent crude oil supply to the Port Harcourt Refinery, pledging to monitor allocation and distribution to prevent disruptions, given plans to potentially deny crude oil allocation and sell abroad.
They warned that there could be potential artificial scarcity of products, if the Federal Government fails to complete the repair work within the stipulated period.
The Chairman of Board of Trustees (BOT) of the host communities, Chief Sunny Nkpe, who read out the seven-point resolution of the group, advocated for appointment of a substantive managing director of the refinery with expertise in refinery operations, to drive efficiency and facilitate the remaining revamping stage.
Nkpe emphasized on the need for the Federal Government and relevant authorities to adhere to the 30 days repair timeline and expect regular progress update from contractors.
He stated: “As we speak to you as an insider, nothing is happening in the refinery.
“So, we are requesting that the Group Chief Executive Officer, Mr. Bayo Ojulari, to as a matter of urgency, appoint a new managing director to the refinery, so that the rehabilitation can continue and set goals can be achieved.
“Shutting down the refinery is something we are fearing that may be permanent. If this refinery is shutdown for 30 days, it would tremendously affect the market price and Nigerians will suffer.
“We will not fold hands as host communities and watch people with vested interests to put our people and Nigerians into more hardship. Bayo Aderenle (Refinery Coordinator) is the problem and he should be removed.”
The stakeholders wondered why other top officials of the Port Harcourt Refinery were sacked and Aderenle was retained, accusing him of being instrumental to the delay experienced by Nigerians.
The communities expressed confidence in Tecnimont, the major company handing the maintenance job, and asked for sufficient funding and timely disbursement for speedy project completion.
On their parts, other executive members of the group, including the Administrative Secretary of the BOT, Joseph Obele; Administrative Chairman of BOT and current Chairman of Independent Petroleum Marketers Association of Nigeria (IPMAN), Port Harcourt branch, Tekena Ikpaiki and Emmanuel Inimgba, who is also BOT secretary, expressed fears that the shutting down could be a ploy to monopolize the petroleum industry.
They warned that the 30 days repair timeline must be strictly adhered to, to avert perceived hike in price of the petroleum products.
Obele, who is also the national public relations officer of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), stated: “What we are doing here today is no way a personal interest, but a general interest to the people of Nigeria. We fear that the recent shutdown of the old Port Harcourt Refinery could be an orchestrated way to give a monopoly to a particular refinery.
“Recall, as at June last year, PMS was selling at N1,300 per litre, then in October/November, when the old Port Harcourt refinery came up, it came down to about N800-N900.
“Nigerians should understand that this recent shutdown could be an orchestrated way to give a monopoly to a particular private refinery; and if that happens, Nigerians will buy fuel close to N2,000 per litre.
“The good thing about the personalities around this table today, is that we are leaders in the oil and gas sector in respective bodies like PETROAN, IPMAN, and others. By proxy, we are members of the host community. So, we have first-hand information.”
Similarly, Ikpaiki, IPMAN branch chairman, said: “It is imperative that I am a part of this call, knowing fully that any shutdown of the refinery brings about scarcity in the town and by extension across the nation.
“We know that in the refinery, there is a reserve. But, if this reserve has been depleted, on what product would the nation leverage on? So, we all came out today, to say if they said it is 30 days maintenance, they should try to stay within the date limit, because beyond this time there may be artificial scarcity in town that will affect the marketers and the entire nation at large.
“Secondly, even though the refinery is not in optimal production yet, we are still good by the little that is coming out from the facility from the day of the commissioning. So, we want this product that is coming and we are using it to service our outlet to continue, other than a long shutdown of the facility.
“For the supply of crude, we want to say, whoever is incharge of giving the refinery crude, should, please, as much as possible, put his resources together in supplying the refinery crude oil to crack, for them to also continue their distribution.”
They, however, commended Mr. Ibrahim Onoja’s team for their dedication and hardwork in revamping the refinery and Mr. Hubb Stockman’s community initiatives at Nigerian National Petroleum Company Retail Limited, Managing Director and his team for fostering relationships with host community bulk retailers.
The Eleme and Okrika communities warned that they would not fold their hands and watch individuals with vested interests to truncate their development.
From their (host communities) reactions, they do not want the refinery to be sold.
Rather they want the Federal Government to continue management it by putting both experienced human and material resources to resuscitate its operations.
Reacting to the development at the refinery, a veteran journalist and expert in business statistics, Elder Ignatius Chukwu, said that Federal Government’s study in 2006 of refineries showed that it could not manage the refineries.
He said based on that study, the Federal Government sold out the three refineries to individuals.
According to him, workers and unions in the industry blackmailed the then government in power into recovering the refineries.
Elder Chukwu noted: “The Federal Government did their study long ago and as far back as 2006 realised that it was not possible for government to profitably manage the refineries.
“The FG found the three refineries as endless holes that would never be filled even with billions of dollars. The Federal Government sold them to three private persons.
“The oil workers under NUPENG and PENGASSAN blackmailed the Umaru Musa Yar’Adua (government) into recovering them back to government. Nigerians saw where the workers vowed to make the places work, if recovered.
“The populist president (Yar’Adua) danced to their pressure and refunded the money paid to the Federal Government. And since 2007, the refineries have gulped several billions of dollars. It is left to all Nigerians to see whether the recovering of the refineries has succeeded or failed. No union leader has been tried in court for the failure.”
According to Chukwu, a guru in economy and oil and gas reporting, the option has been there for the Federal Government to sell the refineries.
He observed: “But guilty conscience would not allow them to return to privatization. It would vindicate Obasanjo and those who supported sale of the refineries. So, they would better hold on and keep bleeding the treasury and pile up foreign debts.
“Besides, the likes of Dangote that bought it have since moved on and built their own refineries. Nigeria is left with huge shame.”