NNPCL to Prioritize Dangote Refinery Over Port Harcourt - Minister Lokpobiri

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has advised the Nigerian National Petroleum Company Limited (NNPCL) to cease operations at the Port Harcourt, Kaduna, and Warri refineries.

This recommendation was made during the Crude Oil Refinery-Owners Association of Nigeria Summit held in Lagos on October 8, 2024.

The context reveals that despite substantial investments amounting to $2 billion, the Port Harcourt refinery remains non-operational.

This situation has prompted criticism from various quarters, including APC youths who have expressed dissatisfaction with the Kyari-led NNPCL's handling of the refineries.

The ongoing challenges highlight the inefficiencies plaguing Nigeria's refining infrastructure, which has been inactive for 24 years despite numerous attempts at turnaround maintenance.

Minister Lokpobiri's proposal shows a strategic pivot towards more viable partnerships. He suggested that the NNPCL should focus on acquiring a larger equity stake in the Dangote Refinery, where it currently holds a 7.2 percent stake.

The Dangote Refinery, which began distributing Premium Motor Spirit (petrol) on September 15, 2024, represents a successful model of refinery operation, contrasting sharply with the moribund state of Nigeria's public refineries.

Lokpobiri's call for the NNPCL to "take equity in the other upcoming refineries rather than running refineries" aligns with a broader governmental push for complete deregulation of the downstream sector.

This approach suggests a shift from direct management of refineries to strategic investments in successful private ventures like the Dangote Refinery. Such a move could potentially enhance efficiency and ensure a more reliable supply of petroleum products.