Renowned human rights lawyer, Femi Falana (SAN), has demanded answers from the Managing Director of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, regarding the $2.9 billion allocated for the rehabilitation of Nigeria’s three refineries. Falana criticized the state of the refineries, particularly the Port Harcourt facility, which he claimed operates at a fraction of its capacity while the Warri and Kaduna refineries remain idle.
Falana made these remarks on Wednesday in Lagos during the commissioning of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) Tower. The event also marked the inauguration of a seven-story building by President Bola Tinubu, described as the tallest labor union office building in Nigeria, powered by the national grid, a generator, and solar energy.
Falana’s Concerns
Speaking at the ceremony, Falana stated, “I challenge NUPENG and PENGASSAN to tell Nigerians the actual state of the refineries. Only 60,000 barrels per day are being blended while NNPCL is silent on the remaining 150,000 bpd capacity as well as on the Warri and Kaduna refineries.” He further alleged that funds allocated for the refineries have been diverted, leaving their full operational capacity underutilized.
NNPCL’s Response
Mele Kyari, who has faced intense scrutiny over the state of Nigeria’s refineries, responded at the event, assuring attendees that the Port Harcourt refinery is functional. However, contrary to his claims, reports indicate that the refinery’s operations are limited to its Crude Distillation Unit (CDU), which produces only naphtha, kerosene, and diesel.
A top official disclosed that the CDU, though operational, cannot produce Premium Motor Spirit (PMS), commonly known as petrol. Instead, the NNPCL has been blending Straight-Run Gasoline (Naphtha) with Crack C5 to create a product marketed as PMS. Experts warn that this approach could have adverse effects on vehicles.
Current State of the Refineries
Kluemedia investigations reveal that the Port Harcourt refinery’s old section is the only part functioning, operating at 70% capacity. The facility is not producing petrol but blending gasoline due to delays in commissioning secondary units of the plant. Officials project that the refinery’s full 150,000 barrels per day (bpd) capacity will not be operational until 2026, contingent on additional funding exceeding $2 billion.
The NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, corroborated this in a statement, confirming that only the old refinery is operational and produces 1.4 million liters of blended gasoline daily.
Calls for Transparency
The commissioning event drew prominent figures, including Joe Ajaero, President of the Nigeria Labour Congress (NLC), Festus Osifo, President of the Trade Union Congress (TUC), and Williams Akporeha, NUPENG President. Falana’s remarks highlight ongoing concerns about transparency and accountability in the management of Nigeria’s oil sector.
Observers note that despite the rehabilitation funds, the country’s refineries continue to underperform, leaving Nigerians heavily reliant on imported fuel. Falana’s challenge underscores the need for clarity on how public funds are being utilized and the urgent need to address the inefficiencies in Nigeria’s oil refining sector.