Editorial

Beyond PH Refinery Rehab

Published

5 years ago

April 13, 2021

Amidst the heated national discourse generated by the Federal Executive Council’s approval of the sum of
$1.5 billion United States dollars for the rehabilitation of the redundant Port Harcourt Refinery last month, the Nigerian National Petroleum Corporation (NNPC) on Tuesday, April 6, 2021, signed a contract for the project with an Italian engineering company, Tecnimont SpA, a subsidiary of Maire Tecnimont SpA in Abuja.
While the Managing Director of the Port Harcourt Refining Company (PHRC), Mr Ahmed Dikko, signed for the nation’s oil giant, Mr David Pellizola, Vice President of Tecnimont SpA for sub-Saharan Africa, signed for his company.
Speaking at the event, the Group Managing Director (GMD) of the NNPC, Mr Mele Kyari said that the sum of $162.39 million had already been provided, adding that an escrow account would be opened in respect of the project in the coming weeks.
The GMD reassured that several stakeholders from within and outside the country had been engaged to guard against fears expressed by a cross section of the Nigerian public over the cost and modalities of the project.
“We dragged in several stakeholders like the Ministry of Finance, ICRC, NEITI, labour unions, foreign technical partners and others. If we had anything to hide, we won’t do this. This is a great history for us. We are aware of the misgivings around cost, political compromises, etc,” he said.
Mr Kyari added that “We acknowledge we made mistakes in the past with regard to Turn Around Maintenance (TAM). But this is not a TAM. Major procurement and construction are involved here. We’ve neglected these refineries and TAM procedures abused. This is retrofitting. Some parts will be replaced and others upgraded, and these spendings will be published”.
According to the Federal Government, funding for the project is to be derived from the NNPC’s internally generated revenue, budgetary allocations provisions and the African Export-Import Bank.
The contractor, Maire Tecnimont SpA has also acknowledged that the project involves the provision of a suite of services for the major rehabilitation of NNPC subsidiary, Port Harcourt Refining Co. Ltd’s Port Harcourt refining complex which includes a 60,000 – b/sd hydroskimming refinery and 150,000 –b/sd full-conversion refinery.
As part of the contract, Tecnimont SpA will deliver engineering, procurement and construction (EPC) activities for the full rehabilitation project which aims to restore the complex to a minimum of 90% of its nameplate capacity over 24 – 32 months, with the final stage to be completed by the year end 2024 or 44 months from April 2021 award date.
Earlier, the project plan had elicited strong criticisms from various stakeholders across the country, one of such critics being the former Vice President of the country, Alhaji Atiku Abubakar.
According to Alhaji Abubakar, the sum to be expended on the project was prohibitive and would appear to be an unwise use of scarce resources for a number of reasons including the fact that the parent company of Shell Petroleum Development Company (SPDC) only last year sold its refinery of similar size with the Port Harcourt Refinery in the United States for $1.2 billion and wondered if there was a public tender before the cost was announced.
“Was due diligence performed? Because we are certainly not getting value for money. Not by a long stretch”, he said, adding that the Shell Martinez Refinery was more profitable than the Port Harcourt Refinery and therefore couldn’t have cost less than it would cost to rehabilitate an ailing one.
“First of all, our refineries have been recording losses for multiple years, and indeed, it is questionable wisdom to throw good money into such venture. At other times, I have counseled that the best course of action would be to privatise our refineries, so they can run more effectively and efficiently.
“At this critical period, we must, as a nation, be prudent with the use of whatever revenue we are able to generate, and even if we must borrow, we must do so with utmost responsibility and discipline,” he said, adding that “we cannot, as a nation, expect to make economic progress if we continue to fund inefficiency, and we are going too deep into the debt trap for unnecessary overpriced projects. Our national debt has grown from N12 trillion in 2015 to N32.9 trillion today. Surely, that is shocking enough to cause us to be more prudent in the way we commit future generations into the bondage of bonds and debt,” he stressed.
In the same vein, the founder of Stanbic IBTC Bank Plc, Atedo Peterside had implored the Federal Government to put the project on hold and subject it to a national debate, arguing that it was too expensive and that many experts preferred that the refinery is sold by the Bureau of Public Enterprises (BPE) to core-investors with proven capacity to repair it with their own funds.
The thinking is the same with a former President of Nigeria Association of Petroleum Exploration’s (NAPE), Abiodun Adesanya who intoned an ulterior motive of fund raising for 2023 political activities.
“The $26.5 billion spent altogether in trying to fix these refineries over the years has not yielded any results”, he said, adding that “public confidence that any of the refineries will work without selling them off to the private sector is weak”.
For Bank Anthony Okoroafor, Chairman, Petroleum Technology Association of Nigeria (PETAN), “The government has no business running refineries. They should sell the Port Harcourt Refinery for $1 billion to capable private investor who will run it profitably and pay tax to the government. The government’s role should be regulatory”.
Conversely, the Independent Petroleum Marketers Association of Nigeria (IPMAN) commended the Federal Government for the move to rehabilitate the Port Harcourt Refinery. Executive Chairman of IPMAN in Rivers State, Comrade Joseph Obele who gave the commendation in Port Harcourt said the project would employ over 25,000 persons when completed.
Comrade Obele also expressed the hope that the resuscitation of the Port Harcourt Refinery would put an end to importation of petroleum products like the premium motor spirit (PMS), otherwise called petrol, adding that the venture would also open up businesses within the host communities of the refinery and make products readily and easily available for marketers.
“It will make us have the best quality of products as against all the rubbish they are importing into Nigeria. It will make things very easy for marketers by getting products without stress. We have plenty reasons to say thank you, Mr President,” he said.
The Ijaw Youth Council (IYC) Worldwide, on its part, has described the rehabilitation project as a signal that the Federal Government has finally woken up from its slumber. According to the President of the Council, Peter Timothy Igbifa, though the reviving and optimizing of the refinery was long overdue, it was better done late than never and expressed the hope that it would create employment for the teeming jobless youths in the Niger Delta, we will be constituting an action committee to work closely with the Ministry of Petroleum and the contractors that will be in charge of the rehabilitation project. We will monitor the execution of the project from the beginning to the end and if we notice any foul play, we will surely raise the alarm”.
While The Tide supports the rehabilitation of the Port Harcourt Refining Company in the light of all the benefits accruable to the nation and the enormous economic impact to the immediate environment of the firm, we strongly advise the Federal Government to hands off the direct running of the company as it has done over the years, bringing only wastage and economic misery to the nation.
For the 32 years that the refinery has been in operation, it is evident that it has gulped more money than it has generated for the country. There is therefore no reason whatsoever for the government to continue to run it under whatever guise. This is why we insist that government should concession or privatise it upon completion of the rehabilitation work.

Editorial

Task Before New IGP

Published

22 hours ago

April 2, 2026

The Tide

The appointment of Olatunji Disu as Inspector-General of Police following the resignation of Kayode Egbetokun marks a significant turning point for the Nigeria Police Force. Announced by President Bola Tinubu, the change in leadership comes at a time when the country is grappling with serious security concerns. Disu’s emergence has already drawn national attention, given both the urgency of the situation and the expectations placed upon him.

Upon confirmation of his appointment, Disu pledged to justify the confidence reposed in him. Central to his promise is a firm commitment to end impunity and enforce a zero-tolerance policy towards corruption within the force. Such assurances, though commendable, will ultimately be judged by the practical steps he takes in the coming months.

The new IGP also emphasised the importance of public cooperation in effective policing. He rightly noted that no police force anywhere in the world can succeed without the support of the people it serves. This acknowledgement highlights the critical relationship between law enforcement and the community, a relationship that has long been strained in Nigeria.

While congratulating Disu on his elevation, it is important to recognise the enormity of the task before him. He assumes office at a particularly difficult time, as underscored by the President during the decoration ceremony. Nigeria’s security landscape remains fragile, requiring decisive leadership and immediate action.

President Tinubu described the appointment as coming at a defining moment for national security. He urged the new police chief to restore public confidence and improve the institution he now leads. The expectation is not merely to maintain the status quo, but to leave the force better than he met it.

The security challenges confronting the nation are considerable. From banditry and terrorism to organised crime and communal conflicts, the threats are diverse and deeply entrenched. These issues have not only endangered lives and property but have also heightened public anxiety across the country.

Ironically, the police, who are meant to be at the forefront of restoring law and order, are themselves beset by internal challenges. Issues such as poor welfare, inadequate training, and systemic corruption have weakened the institution’s effectiveness. This dual burden makes Disu’s assignment even more complex.

A key priority for the new IGP must, therefore, be to restore peace and rebuild confidence, both within the force and among the general public. For many Nigerians, the police are no longer seen as protectors but as adversaries. This perception, whether wholly justified or not, must be urgently addressed.

Cleaning up the force and restoring its credibility will require more than rhetoric. Disu has already made the necessary commitments, but Nigerians will expect tangible results. Institutional reform must be thorough, transparent, and sustained if it is to yield meaningful change.

Equally important is the welfare of police personnel. Many officers operate under extremely poor conditions, with inadequate facilities and insufficient resources. Numerous police stations across the country are in a deplorable state, lacking basic equipment needed for effective policing.

No organisation can function optimally under such circumstances. If the police are to fulfil their constitutional mandate, they must be properly equipped and motivated. Addressing issues of welfare and infrastructure will go a long way in boosting morale and enhancing performance.

The list of challenges before the new police chief is extensive. From modernising equipment to improving training and discipline, the reforms required are wide-ranging. It is hoped that Disu will take the time to carefully assess these issues and implement practical solutions.

His appointment also comes amid growing calls for the establishment of state police. There is now a broad national consensus that the current centralised policing system is inadequate for addressing local security challenges. This debate has brought renewed attention to constitutional provisions governing policing in Nigeria.

While concerns about the potential pitfalls of state policing remain, its advantages appear increasingly compelling. Managing this transition, if it materialises, will be another critical responsibility for Disu. Ultimately, he assumes office with considerable goodwill, but his success will depend on his ability to translate promises into measurable improvements.

The success or failure of Olatunji Disu will be measured not by promises made but by results achieved. Nigerians yearn for a police force that is professional, accountable, and truly committed to their safety. If Disu can rise to this moment, confront entrenched challenges with courage, and drive meaningful reform, he will not only justify his appointment but also leave a lasting legacy in the annals of policing in Nigeria.

Editorial

Nigeria: Cushioning Effects Of M’East Crisis

Published

3 days ago

March 30, 2026

The Tide

The ongoing crisis in the Middle East between the United States and Israel on one hand and Iran on the other has once again unsettled global stability, with escalating tensions disrupting oil production routes and threatening key supply chains. Conflicts involving major oil-producing nations and strategic waterways have created uncertainty in the international energy market. As history has repeatedly shown, instability in this region often sends shockwaves across the global economy, particularly in energy-dependent countries.

One of the most immediate consequences of this war has been a sharp rise in global crude oil prices. Brent Crude has surged between $105 and $110 per barrel in recent weeks, reflecting fears of supply shortages. This increase has translated into higher fuel costs worldwide, placing immense pressure on both developed and developing economies.

Nigeria, despite being a major crude oil producer, has not been spared. The country’s heavy reliance on imported refined petroleum products has meant that global price increases directly affect domestic fuel costs. Rather than benefiting fully from higher crude prices, Nigerians are grappling with the paradox of rising oil wealth alongside worsening living conditions.

The impact on the cost of living has been severe. Transportation fares across major cities have increased by over 50 per cent, while food inflation has climbed above 30 per cent, according to recent data from the National Bureau of Statistics (NBS). The ripple effect of higher fuel prices has touched every sector, from agriculture to manufacturing, making basic goods increasingly unaffordable for ordinary citizens.

In response to this growing hardship, the Nigeria Labour Congress (NLC) has demanded urgent intervention from the Federal Government to cushion the effects of the recent spike in petrol prices occasioned by the Middle East crisis. The call reflects widespread frustration among workers and the broader population.

The NLC made this demand in a statement titled “Save Nigerians From This Shock: An Urgent Relief Has Become Necessary,” signed by its President, Joe Ajaero. The statement underscores the urgency of the situation and highlights the growing disconnect between government policy and the lived realities of citizens.

We strongly support the NLC’s clarion call and urge the administration of President Bola Tinubu to take immediate and decisive steps to cushion the harsh effects of the crisis on Nigerians. Leadership at this critical moment requires bold, people-centred policies that prioritise national welfare over market orthodoxy.

One such step is the reintroduction of a fuel subsidy, funded by the gains from the current surge in global crude oil prices. The government could choose to subsidise either the finished petroleum products or the crude supplied to local refiners. Providing crude at reduced rates to Aliko Dangote refinery would significantly lower the final pump price for consumers.

This brings into focus the role of Dangote, whose refinery has the potential to transform Nigeria’s energy landscape. Dangote has stated that the Federal Government currently supplies only 30 per cent of the crude required for his refinery, compelling him to import the remaining 70 per cent. For a country that produces millions of barrels daily, this situation is both inefficient and unacceptable.

Beyond fuel pricing, there is a pressing need for direct support to workers. A cost-of-living allowance, a wage award, and targeted tax relief measures would provide immediate relief. At the same time, the government must take concrete steps to revive Nigeria’s dormant public refineries, which have long been a drain on public resources without delivering value.

The sharp rise in fuel prices, now selling at approximately N1,310 to N1,400 per litre in many parts of the country, has deepened economic hardship. For millions of Nigerians, daily survival has become a struggle. Without urgent intervention, the nation risks severe social unrest, as frustration continues to mount among the populace.

It is deeply troubling that the Federal Government appears to have left Nigerians at the mercy of volatile global oil prices triggered by the Middle East imbroglio. This situation has exposed the fragility of the downstream petroleum sector and highlighted the failure to build resilience despite decades of oil wealth.

As long as Nigeria remains tied to a market-driven pricing structure dictated by global fluctuations and continues to neglect its domestic refining capacity, it will remain vulnerable to external shocks. International conflicts and speculative market forces will continue to dictate the economic fate of Nigerian households.

Nigerian workers are being pauperised and subjected to immense suffering. They are not mere statistics; they are the engine of the nation’s economy. When that engine overheats, the entire system risks collapse. Ignoring their plight is not just unjust—it is economically reckless.

Finally, the estimated N30 trillion oil windfall expected from the current crisis must not be squandered as in the past. These resources should be transparently managed and invested in social protection programmes, infrastructure, and economic stabilisation. In addition, Nigeria must develop robust crude storage systems, as seen in other countries, to cushion future shocks. Failure to properly manage the energy situation could further accelerate inflation, compounding the already substantial burden on citizens.

Editorial

Thumbs Up For Sit-At-Home Reversal

Published

2 weeks ago

March 23, 2026

The Tide

For the first time in over five years, the bustling markets of Anambra State, particularly the sprawling Onitsha Main Market, opened for business on February 2, 2026, without the fear of coercion or violence. This development marks the definitive end of the illegal Monday sit-at-home order that has held the South-East region hostage since 2021. Governor Chukwuma Soludo has achieved what many thought impossible, finally laying to rest an obnoxious practice that has bled the region dry economically and psychologically.

The Monday sit-at-home order was first declared by the Indigenous People of Biafra (IPOB) on July 30, 2021. The proscribed organisation imposed the directive to pressure the Federal Government into releasing their detained leader, Nnamdi Kanu, and to advance their demand for the creation of an independent sovereign state of Biafra. What began as a protest mechanism quickly degenerated into a compulsory lockdown enforced through intimidation and violence.

For more than four years, the South-East had been crippled every Monday. Schools remained shut, businesses pulled down their shutters, and economic activity ground to a halt across the five states of Anambra, Abia, Enugu, Ebonyi, and Imo. Governor Soludo recently quantified the devastation, noting that every Monday lost represented about 20 per cent of the work week for the region’s informal economy. When calculated over 52 weeks annually for several years, the cumulative losses are truly staggering.

The economic cost to the region has been nothing short of catastrophic. Investors fled, businesses relocated to other parts of the country, and the South-East lost its competitive edge as West Africa’s premier commercial hub. The Onitsha Main Market, reputedly the largest market in West Africa, sat empty every Monday. Thousands of traders lost 52 working days every year, children missed countless hours of education, and families saw their incomes dwindle. The opportunity cost of this self-imposed isolation runs into hundreds of billions of naira.

Professor Soludo demonstrated exceptional leadership by taking the bull by the horns. His administration ordered the closure of the Onitsha Main Market for one week, sending a clear message that the era of economic sabotage was over. Following this decisive action, he engaged in meaningful dialogue with traders and stakeholders, reaching a consensus that markets must operate on Mondays like every other day of the week.

The results of this courageous stance are now visible for all to see. Over 45,000 shops at the Onitsha Main Market reopened for business, and traders turned out in their tens of thousands, jubilant that they could finally resume their livelihoods without fear. The atmosphere was reportedly electric, with over 100,000 people celebrating what many described as a liberation from years of economic captivity imposed by faceless enforcers.

Soludo deserves the highest commendation for confronting this age-long practice that isolated the South-East from the rest of Nigeria. It takes uncommon courage and determination to challenge an entrenched system enforced through fear and violence.

It is senseless for any group to impose such hardship on the very people it claims to be fighting to liberate. Perhaps IPOB thought they were punishing the Federal Government by shutting down the South-East every Monday. Little did they realise that they were inflicting the deepest wounds on their own people. The traders, the schoolchildren, the transporters, and the ordinary workers who lost income and opportunities were all Igbos, the very constituency IPOB professes to protect.

Can it be imagined what it takes to shut down an entire geopolitical zone every Monday for over four years? The mathematics of loss is simple but devastating: 52 Mondays annually means 52 lost working days per year. For a region built on commerce and entrepreneurship, this represented a self-inflicted wound that no external enemy could have achieved. The South-East was effectively closed for business one day every week while the rest of Nigeria moved forward.

Thankfully, IPOB has now officially endorsed the cancellation of the sit-at-home order once and for all. In a statement released, the group announced that Nnamdi Kanu had directed the “total cancellation” of the directive, urging residents to open their shops, go to work, and send their children to school without fear. This is a welcome development, though we must approach it with cautious optimism, as this is not the first time such announcements have been made.

Previous attempts to end the practice were frustrated by the activities of one Simon Ekpa, a self-styled disciple of the IPOB leader based in Finland. Whenever IPOB issued statements calling for a cessation of the sit-at-home, Ekpa would counter with orders for its continuation, creating confusion and perpetuating the cycle of fear. Now that Ekpa has been convicted and jailed in Finland for inciting terrorism and tax fraud, we hope there will be no further excuses to continue this damaging observance.

With the definitive end of the sit-at-home order, people in the South-East, as well as Nigerians travelling through the region, can finally heave a sigh of relief. The order caused immense apprehension for travellers who had to pass through the South-East to reach other parts of the country. Major highways were deserted on Mondays, creating security vulnerabilities and disrupting the flow of commerce and movement across the nation. This created countless problems for families, businesses, and national cohesion.

Now that this painful chapter has come to an end, we urge the proscribed IPOB not to renege on their decision. The South-East people, who were the greatest victims of this infamous order, can now return to doing what they do best: business. The resilience of the Igbo entrepreneur is legendary, and given the opportunity, the region will bounce back stronger than ever. However, this requires that the peace holds and the markets remain open every Monday without exception.

We urge everyone in the region—business owners, market leaders, transporters, stakeholders, and ordinary citizens—to cooperate fully to ensure that this new development is sustained. The government at all levels must also begin to address the underlying issues that led to this ugly incident. We cannot run away from the fact that there is a genuine feeling of marginalisation and oppression in the South-East that the Federal Government needs to look into.

Undoubtedly, Governor Soludo’s action has impacted positively on Anambra State and the entire region. It is a huge plus for the state’s economy, the security architecture of the South-East, and the confidence of investors who had written off the region as too risky for business. By restoring normalcy to Mondays, Soludo has given the people back their most valuable asset: the freedom to earn a living without fear. This is leadership, and this is progress.