P’Harcourt, Warri refineries will boost energy sufficiency – NEITI

The Nigeria Extractive Industries Transparency Initiative has said the resumption of operations at the 210,000 barrels per day Port Harcourt refinery and the 150,000bpd Warri refinery is a monumental step towards achieving energy self-sufficiency and fostering economic sustainability.

The agency, in a statement signed by the acting Director of Communication and Stakeholders Management, Obiageli Onuorah, on Sunday, said these accomplishments represent significant strides toward addressing Nigeria’s long-standing dependence on imported petroleum products.

It said the milestone will reduce the staggering costs associated with fuel importation and create a ripple effect across key sectors of the economy.

 It also congratulated the Nigerian National Petroleum Company Limited on the successful completion of the first phase of the Port Harcourt Refinery rehabilitation project and the gradual resumption of operations at the Warri refinery.

Recall that within a month, the NNPCL achieved the operationalisation of the two refineries that had remained dormant and inactive for decades.

Although not operating at full capacity, this achievement marked a significant milestone, as it revived vital infrastructure that had long been neglected and underutilised.

But the extractive industries transparency agency acknowledging the milestone, said it will positively impact Nigeria’s foreign exchange reserves and reduce the staggering costs associated with fuel importation.

“NEITI acknowledges that the revitalisation of the Port Harcourt and Warri refineries has the potential to enhance energy security, create jobs, stimulate local industries, and free up critical funds that can be redirected towards national priorities like health, education, and infrastructure,” the statement read in part.

NEITI added that through its Industry Reports for the Oil and Gas 2023, it was disclosed that between 2006-2023 (in 18 years), a total of N15.87tn has been expended as under-recovery through price differentials (subsidy), with 2022 recording the highest sum of N4.714tn.

“2022 also recorded the highest importation of PMS put at 23.54bn litres, while 2017 recorded the lowest import volumes of 16.88bn litres.

“Between 2022 and 2023, importation volumes declined by 3.25bn litres (14 per cent) from 23.54bn litres in 2022 to 20.28bn litres in 2023. This is attributed to the announcement of the removal of fuel subsidy.

“With the current efforts to put the refineries back to work, NEITI is delighted that the huge payments expended on subsidy will henceforth be available to support national development, ongoing rebuilding of the national infrastructure and poverty reduction,” it added.

The acting director also urged the NNPCL to expedite action on the second phase of the Port Harcourt refinery and the ongoing rehabilitation of the Kaduna refinery.

“This should be followed closely with the restoration of phase 1 of the Port Harcourt refinery to optimal capacity in the ongoing rehabilitation efforts”, NEITI stated.

“We commend the leadership of the NNPCL team for their resilience, dedication, and unwavering determination in executing this complex and challenging task.

“As stakeholders in Nigeria’s energy sector, NEITI said that it remains committed to supporting NNPCL’s efforts to ensure the long-term success of these projects and to share the achievements with national and global partners, including the Extractive Industries Transparency Initiative community.

“NEITI stands ready to collaborate with NNPCL to sustain and expand these gains in the national interest and Nigeria’s energy security,” the statement concluded.