New report links Port Harcourt Refinery to soaring fuel prices in Nigeria.

The revitalized Port Harcourt Refining Company (PHRC) in Rivers State is now a major concern, as a new report reveals that it contributes significantly to Nigeria’s high fuel prices....CONTINUE READING>>>

Despite substantial investments in its rehabilitation, PHRC remains inefficient, unable to operate optimally, according to Business Hallmark’s findings. The refinery, which includes two plants—one from 1965 with a capacity of 60,000 barrels per day and another from 1989—has faced persistent issues even after its recent refurbishment.

The Nigerian National Petroleum Company Limited (NNPCL) had celebrated its reopening in November 2024 as a key move to reduce reliance on fuel imports and stabilize prices. However, findings suggest the opposite. The refinery’s outdated infrastructure, an oversized workforce, and bureaucratic inefficiencies continue to hinder progress. Additionally, the refinery depends on expensive semi-processed inputs from other refineries, making local production more costly than importing fuel.

Energy experts highlight that the old PHRC plant was designed for manual operation, requiring a large workforce. In contrast, modern refineries like Dangote’s, which is 85% automated, have lower labor costs, resulting in cheaper production. The PHRC’s rehabilitation project, conducted by Italian firm Tecnimont, was merely a refurbishing, not a full upgrade. This means that many components of the refinery are over 60 years old, leading to frequent breakdowns and high maintenance costs.

Reports suggest that fuel refined at PHRC costs approximately ₦65 more per liter compared to that from the Dangote Refinery, raising doubts about the financial sense of continuing to invest in the aging, government-owned facility. Despite billions of dollars spent on turnaround maintenance for the country’s refineries since 1999, none have operated efficiently, with PHRC among the worst affected.

Experts warn that the refinery’s outdated design and lack of modern processing units, such as a Vacuum Distillation Unit and a Catalytic Cracking Unit, severely limit its refining capacity. A consultant likened the PHRC to “a 60-year-old car with a new engine but aging components that constantly need repairs.”

The refinery’s Director of Operations, Moyi Maidunama, recently acknowledged operational challenges, confirming that production was temporarily reduced to address technical issues. This reinforces concerns that PHRC is far from reaching its full potential, leaving Nigeria’s hopes for affordable locally refined fuel uncertain.