The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the Port Harcourt refinery is on track to meet its August deadline for producing petroleum products.
According to the National Operations Controller of IPMAN, Zarma Mustapha, the refinery will be able to supply 10 to 12 million liters of petrol to marketers, boosting the country’s supply of petroleum products to 11 to 15 million liters daily.
Mustapha, who spoke with Channels TV on Thursday, expressed confidence that the refinery will operate independently, selling at the prevailing market price with little or no government interference. “It is not going to be run like a government entity as it has been before,” he said. “I believe that the refinery coming up, will really boost the demand and supply of PMS to nothing less than 11 to 15 million litres daily.”
The refinery’s operations will also help ensure energy availability across the country. With a capacity of 0,000 barrels, the refinery can produce 10 to 12 million liters of petrol, which is expected to significantly reduce the country’s reliance on imported petroleum products.
Regarding the possibility of price reduction for petroleum products, Mustapha noted that it may be possible if the operators decide to sell at a subsidized rate. However, he emphasized that the refinery must recover its costs, including the $1.5 billion loan taken from a creditor for its maintenance in 2021. “They have to pay back the loan they took also,” he said. “The $1.5 billion is a loan they took from one of these African financial institutions. They took the loan with the promise of paying back with whatever recoup from the earnings of the refinery.”
Despite being an oil-producing nation, Nigeria currently relies heavily on imported refined petroleum products due to its lack of functional refineries. The country’s four state-owned refineries in Port Harcourt, Kaduna, and Warri are yet to operate at full capacity. In a recent statement, NNPC boss Mele Kyari assured that the Port Harcourt refinery will commence operations in August, while the other three refineries in Kaduna and Warri are expected to start operations in the second half of 2025.
The announcement is part of the government’s efforts to revitalize the nation’s refining capacity and reduce dependence on imported petroleum products. However, previous deadlines for the resumption of refinery operations have not been met, raising doubts about the feasibility of this timeline.
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