The Petroleum and Pure Fuel Senior Workers Affiliation of Nigeria (PENGASSAN) says the previous Port Harcourt Refinery has been rehabilitated to about 90 per cent and may resume operations inside one week if the Nigerian Nationwide Petroleum Firm Restricted (NNPC Restricted) decides to restart the plant.
The disclosure was made by PENGASSAN President, Festus Osifo, whereas talking on Channels Tv’s The Morning Temporary on Tuesday, February 10, 2026.
His feedback come amid renewed debate over the viability of Nigeria’s state-owned refineries, following remarks by NNPC Restricted’s Group Chief Govt Officer (GCEO), Engr. Bayo Ojulari, that reopening the Port Harcourt Refinery amounted to an enormous waste of sources.
Osifo mentioned the refinery is technically prepared for operations, noting that the important thing situation delaying its restart just isn’t mechanical readiness however profitability concerns by NNPC Restricted.
What he’s saying
Osifo defined that though in depth rehabilitation work has been accomplished, operating the refinery might end in monetary losses relying on crude oil prices and product pricing.
- “As of at this time, you can begin the previous Port Harcourt refinery, and it’ll operate. You possibly can put it on at this time, and it’ll operate. Nonetheless, NNPCL as an organization is there to make a revenue.”
- “So, in the event that they need to begin it at this time, throughout the subsequent one week, they will carry it again to life.”
- “It has been rehabilitated as much as about 90 per cent.”
- “If you happen to feed crude oil price, say, 5 million {dollars} into the previous Port Harcourt refinery, what you might be more likely to get on the different finish whenever you promote the petroleum merchandise could also be about 4.5 million {dollars}.”
Regardless of these considerations, the PENGASSAN president insisted that funds spent on rehabilitating the refinery weren’t wasted, pointing to vital upgrades carried out on the facility.
He mentioned main parts reminiscent of compressors, management rooms, and panels have been changed and stay put in, including that the refinery’s asset worth is now greater than earlier than the rehabilitation.
Background
The Port Harcourt Refinery rehabilitation has been a long-running undertaking spanning a number of years and administrations.
- In March 2021, the Federal Govt Council accepted the rehabilitation of the Port Harcourt Refinery at a value of $1.5 billion, with the intention of restoring home refining capability.
- On November 26, 2024, NNPC Restricted introduced that the refinery had commenced manufacturing after a chronic shutdown. In line with the corporate, the rehabilitated advanced of the previous Port Harcourt refinery was working at about 70 per cent of its put in capability on the time.
Nonetheless, operations have been later scaled down after which totally shut once more in Might 2025 on account of operational challenges. Since then, the ability has remained dormant, fueling public criticism over the large investments dedicated to Nigeria’s state-owned refineries with restricted output to indicate.
Why it issues
The operation of the Port Harcourt Refinery is taken into account crucial to Nigeria’s economic system, vitality safety, and international trade stability, notably because the nation seeks to scale back its long-standing dependence on imported petroleum merchandise.
- A useful refinery would cut back strain on international trade by reducing gasoline import payments.
- Native refining is anticipated to help job creation and industrial development within the oil-producing area.
- Elevated home provide might introduce competitors alongside the Dangote Refinery, probably moderating pump costs.
The refinery’s restart might additionally assist mitigate recurring gasoline shortage, which frequently disrupts transportation, logistics, and broader financial exercise. Nonetheless, considerations over profitability increase questions in regards to the sustainability of continued state involvement in refinery operations.
What it’s best to know
NNPC Restricted’s GCEO, Engr. Bayo Ojulari, just lately disclosed that the corporate shut down Nigeria’s state-owned refineries after inner assessments confirmed they have been working at what he described as “monumental losses” and destroying nationwide worth.
Ojulari mentioned the choice adopted detailed technical and business opinions triggered by mounting public criticism over years of heavy funding with minimal returns. In line with him, the refineries turned a direct precedence when his management workforce assumed workplace as a result of stage of public scrutiny surrounding their rehabilitation.
Whereas labour unions argue that the Port Harcourt Refinery is technically prepared and extra helpful after rehabilitation, NNPC Restricted maintains that business realities should information selections on restarting operations.
