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PH Refinery Ends 2020 In Operating Losses Spends N19.215bn Admin Cost, N22.55bn On Salaries, Others

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The Port Harcourt Refinery Company (PHRC) has ended the 2020 financial year with huge operating losses while amassing colossal expenses in administrative overheads and salaries and allowances of staff, without generating a dime.
The local refinery, which is managed by Ahmed Dikko, an engineer, reported no income in 2020 but incurred administrative expenses of N19.215billion while spending N22.55billion of payment of salaries, wages and other benefits to unproductive workers.
These revelations were contained in the current Nigerian National Petroleum Corporation (NNPC) Financial Report.
Worse still, the refinery, which is one of the subsidiaries of the Nigerian National Petroleum Corporation (NNPC) managed by Mele Kyari, employed average of 487 new staff members in 2020.
To show the high level of financial recklessness going on at the mismanaged refinery, the 487 new workers are being paid N3.93billion annually, indicating that each of them takes an average of N8.072million annually or N672,713 monthly.
The amount they earn monthly is about the annual salary of a normal Level 8 Federal Government worker.
Between 2019 and 2020, the refinery employed 1,162 new staff, paying N41.163billion in salary and wages, according to experts’ calculations of the company’s wage data on its financial statements.
Out of the 487 staff members employed in 2020, 430 were senior and management staff, amounting to 88.2 per cent, with huge financial implications.
Only 57 were junior staff members.
Also, out of 675 staff engaged by the refinery in 2019, 656 were management and senior staff, representing 97 per cent of the total, with huge financial implications.
“It is looking like jobs for the boys at our dear refineries. And I wonder, most of these guys are earning heavy wages,” US-based Financial Consultant, Ellam Ogochukwu said.
“Whoever is running that enterprise deserves to answer several questions,” she said.
Also, staff pension, gratuity and ‘long service award’ gulped N77.76billion in 2020 as against N63.41billion the previous year.
Surprisingly, under Dikko and Kyari, the PHRC’s unproductive staff were allowed to take car loans, compassionate loans and advances valued at N1.001billion in 2020.
The amount was N597.297million in 2019.
In 2020, this refinery, which made no revenue, incurred a comprehensive loss of N53.179billion.
In the previous year, the company made no revenue but incurred N50.530billion in comprehensive loss.
Between 2017 and 2020, the company comprehensively lost N241.609billion.
Its revenue within this period was merely N6.27billion.
“This refinery did not produce oil. What you have is that some people just iron their clothes, go to work and come back at the end of the day without adding to the productivity of the company,” Oil and Gas Analyst at Lagos-based Chapel Hill Denham, Mustapha Wahab said.
The NNPC Managing Director, Mele Kyari, is the chairman of Port Harcourt Refinery.
He is followed by Ahmed Dikko (MD); Babatunde Sofowora (Executive Director of Services); Reginald Udeh (Executive Director, Finance and Accounts); James Ifeanyichukwu Ajibo (Executive Director, Operations); and Awaisu Muazu (late, served till July, 2020).
These directors took N99.742million as emoluments in 2020, a 67 per cent increase from N59.650million they took in 2019.
In 2019, the Port Harcourt Refinery did not record any revenue.
Yet, it reported N25.19billion in expenses.
Six directors collected N59.65million in fees, meaning that each of them received an average payment of N9.94million a month in 2019.
According to the NNPC, names of the six directors in 2019 were: Group Managing Director of NNPC, Malam Mele Kyari; Managing Director Abba Bukar (who retired in March, 2020); Executive Director of Services, Babatunde S. Sofowore; Executive Director of Operations, Ganiyu Abiodun Owolabi; another Executive Director of Operations, Engr Abel N. Imonighavwe; and Executive Director of Finance and Accounts, Mrs Aramide M. Ekundayo.
Salaries, wages, allowances, redundancy and pension costs gulped N22.195billion.
What that means is that, on the average, each staff member received N32.88million in 2019 from a company that made no revenue.
This amounts, on the average, to N2.74million each month.
Total salaries and pays received by staff of Port Harcourt Refinery between 2017 and 2019 amounted at N80.57billion.
But revenues received by the company within the period were estimated at N6.27billion – implying that the NNPC sought N74.3billion from outside the refinery to pay staff salaries.
Rather than privatise the refinery, the NNPC chose to pump an equivalent of 4.5 per cent of Nigeria’s 2021 budget ($1.5billion) into the refurbishment of a refinery that comprehensively lost N206.069billion between 2017 and 2020.
Wahab said that the investment in the refinery made no sense.
“Dangote Refinery is coming on board and can process about 650,000 barrels per day of crude oil – highest in the world. NNPC has taken 20 per cent stake in Dangote.
“Why then are you resuscitating Port Harcourt Refinery? We have done the analysis at Chapel Hill Denham and found that government should be spending $3billion or more to ensure efficiency of the refinery. So, it does not make investment sense because you are not going to compete with yourself,” he said.
“Two, some countries are exiting low-carbon energy sources and migrating to clean energy. So, after rehabilitating Port Harcourt Refinery, for how long will you enjoy its benefits, given that your market is not just Nigeria but also those countries exiting what you intend to sell to them?”, he asked, urging the Federal Government to concession it for optimal benefits to the Nigerian economy.
Also, Oil and Gas Governance Consultant, Henry Ademola Adigun, said that the refinery was badly managed.
“The point is that the refineries are still badly managed. The faster the corporation becomes a limited liability company, the better,” Adigun said.
“You have a refinery not producing anything and not making revenues but salaries are being paid. How did the NNPC make the profit they said they made when the inefficiencies are there? The profit and loss do not show anything. They simply want to make it attractive to the stockman.”
He said there was no cost-cutting by the NNPC or the refineries, adding that there were also “no innovative efficiency, no restructuring or replanting and no cost-saving on salaries and wages.”
Former President of the Nigerian Society of Petroleum Engineers, Joe Nwakwue, said that the only thing that the corporation could have done was to sell off the refineries.
“If you have a factory and is not producing, you will have to pay the gate man and the even the insurance company.”
The PHRC was commissioned in 1965.
It was made up of two refineries: the old refinery commissioned in 1965 with capacity of 60,000 barrels per stream day (bpsd) and the new refinery commissioned in 1989 with an installed capacity of 150,000bpsd, according to the NNPC.
It has a capacity of 210,000bpsd with five process areas.
In 2000, the then government of Nigeria shut down the refinery for turnaround maintenance.
Other three refineries in the country were also expected to undergo a similar process, Oil & Gas Journal said.
As of that time, $364million had already been spent on endless turnaround maintenance (TAM) services.
About $25billion has been spent on turnaround maintenance in the past 25 years.
The Institute for Global Energy Research, in a 2004 article, said the barrage of corruption, poor management, sabotage and lack of the mandatory turnaround maintenance (TAM) every two years had made all the refineries inefficient, making them operate at about 40 per cent of full capacity.
The NNPC said in April, 2020, that it would hand over the four refineries in the country to a private firm to manage.
“We are going to get an O&M contract; NNPC won’t run it. We are going to get a firm that will guarantee that this plant would run for some time. We want to try a different model of getting this refinery to run. And we are going to apply this process for the running of the other two refineries.”
However, this has not happened.
Rather, the corporation has sought money to rehabilitate the failed refineries.
It has prided itself on cost-cutting efficiency, but its refineries have incurred humongous losses.
Analysts say NNPC has no cause to hold onto the running of the refineries, having shown no capacity to manage it.

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Fubara Tasks New SSG On Honour, Service, Protection Of Rivers Interest 

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Rivers State Governor, Sir Siminalayi Fubara, has charged the newly appointed Secretary to the State Government (SSG), Barrister Benibo Anabraba, to uphold the dignity of his office, protect the interest of the State, and discharge his duties with honour, respect, and responsibility.

 

Governor Fubara gave the charge during the swearing-in ceremony of the new SSG, held on Monday at the Executive Council Chambers of Government House, Port Harcourt.

 

Describing Anabraba’s appointment as an act of divine favour, the Governor said positions of leadership are not attained by our own human effort but by God’s grace in our lives.

 

“Let me first congratulate you. I’m using the word ‘congratulations’ because a few of us, not by our power but by the special favour of God, find ourselves in exalted positions. It’s not because we are the best, but only by His grace.”

 

Governor Fubara noted that the Office of the Secretary to the State Government is one of great honour, occupied by only a few since the creation of Rivers State, and urged the new appointee to serve with humility and dedication.

 

He, however, expressed confidence in Anabraba’s capacity to deliver, citing his past record as a principal officer of the Rivers State House of Assembly.

 

“This position is a rare privilege. Guard that office with honour. Discharge your duties with respect. Protect the interest of Rivers State. When you leave office, let it be with honour, and that only comes through responsible service.

 

“I know you’re a dedicated person. This opportunity is not for show or display of power. It’s a call to duty,” he cautioned.

 

The Governor emphasised that the current administration is focused on restoring confidence of the people because peace has been achieved in the State.

 

He enjoined the new SSG to align with the vision of the administration and contribute meaningfully to the collective progress of Rivers people.

 

“We are emerging from a very difficult period and must reassure our people that we mean well for them, especially now that peace has returned to Rivers State. By the grace of God, do your work well. Help us succeed in this assignment that God has given to us,” the Governor added.

 

 

 

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Nigeria’s First Lady Flags Off Renewed Hope Health Initiative In Rivers …Targets Measles, Rubella, HPV Vaccination For Children, Women

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The First Lady of the Federal Republic of Nigeria, Senator Oluremi Tinubu, has reiterated her commitment to expanding vaccine coverage nationwide, declaring that the ongoing Measles and Rubella vaccination campaign in Rivers State will surpass all previous records in scope and success.

 

Speaking through the wife of the Rivers State Governor, Lady Valerie Siminalayi Fubara, Senator Tinubu made this statement during the flag-off ceremony of the Measles, Rubella, and HPV Vaccine Sensitisation Campaign, organised under the Renewed Hope Initiative (RHI) at the Banquet Hall, Government House, Port Harcourt on Monday.

 

The campaign, implemented by the RHI in collaboration with the Rivers State Primary Healthcare Management Board, C-WINS, and international partners including WHO, UNICEF, Gavi, and Vaccine Alliance, aims to protect millions of children and women from preventable diseases.

 

“We will leave no stone unturned to ensure that the measles vaccine coverage achieved through this campaign exceeds that of the past,” Senator Tinubu affirmed. “Through technical and financial support, this partnership will ensure that by February, 2026, well-trained staff are deployed across communities to vaccinate all eligible children.”

 

Rivers State is among the Fourth Stream of Phase One states participating in Africa’s largest-ever health initiative, targeting over 106 million Nigerian children for vaccination against Measles, Rubella, Polio, and HPV. The local rollout is expected to commence in February, 2026, reaching children aged 9 months to 14 years across all 23 local government areas.

 

Senator Tinubu highlighted the risks of the targeted diseases, describing Measles and Rubella as “highly contagious and potentially deadly,” noting that Rubella can cause severe complications for unborn babies, if contracted by pregnant women.

 

“The best way to prevent both diseases remains vaccination,” she emphasised.

 

Narrowing down to efforts by the Rivers State Ministry of Health, the State Primary Healthcare Development Agency, and the State Task Force on Primary Healthcare, led by Deputy Governor, Prof. Ngozi Nma Odu, she noted how instrumental it has been in ensuring comprehensive outreach through an inter-sectoral approach involving education, women affairs, information ministries, traditional and religious leaders, and the security sector.

 

Senator Tinubu urged parents and caregivers to cooperate fully with health workers.

 

“The Measles-Rubella vaccine is safe, effective, and free in all our health centres. Please, ensure your children are vaccinated at the right time to protect them from these deadly infections.

 

“Let us all play our part in spreading awareness. Together, we can safeguard the health and future of our children,” she said, before formally declaring the sensitisation programme open.

 

In her goodwill message, Deputy Governor, Prof. Ngozi Nma Odu, commended the Renewed Hope Initiative for its sustained impact in Rivers State, noting that the Measles, Rubella, and HPV Sensitisation Programme marks “a significant step in promoting public health awareness, particularly among women and children.”

 

She highlighted the particular benefit to the girl-child through HPV vaccination, calling it “an investment in their future health and empowerment.”

 

The Rivers State Coordinator of WHO, Prof. Giwa Abdulganiyu, praised the collaboration between RHI and the State Government, describing the campaign as “a worthy step in the right direction,” and reaffirmed WHO’s continued partnership in achieving health for all.

 

Earlier, the RHI Rivers State Coordinator, Mrs. Tonye Briggs-Oniyide, welcomed guests, and reaffirmed the initiative’s goal of reducing the incidence of Measles and Rubella in the state.

 

“These diseases have the potential to cause emergencies and great distress in families. Today’s flag-off represents our collective determination to raise awareness and prevent such tragedies,” she added.

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Workers’ Audits Not Meant For Downsizing – Walson Jack

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Mrs Didi Walson-Jack, Head of the Civil Service of the Federation (HCSF), says the ongoing Personnel Audit and Skills Gap Analysis (PASGA) initiative is not aimed at downsizing workers, but aimed at ensuring up-to-date data to reposition the Federal Civil Service.

Walson-Jack stated this in Abuja on Thursday at a sensitisation programme on the PASGA project, organised by the office of HCSF for Permanent Secretaries, Directors and consultants of the initiative.

Represented by Dr Deborah Odoh, Permanent Secretary, Service Policies and Strategies Office, Walson-Jack said the project was designed to strengthen personnel data integrity, align competencies with organisational needs, and promote evidence-based human resource management.

“The unique thing about this exercise is that it is not just a personnel audit but also a skills gap analysis,” she said.

She explained that the project would enable government to have reliable data for effective planning, deployment and decision-making in the civil service.

“Over the years, the Service has grappled with fragmented and outdated personnel information, leading to inefficiencies and misalignments.

“Through PASGA, we are setting a new standard, one that is transparent, data-based, and performance-oriented.

“This reform will deliver accurate personnel records, identify existing skills gaps, and support targeted training and redeployment aligned with the evolving needs of government,” she said.

According to her, the exercise will help assess the competencies of each staff member, identify gaps and plan relevant training to ensure that personnel are properly deployed.

“With this initiative, we will reposition and build capacity across the Service. We have already commenced digital literacy training with National Information Technology Development (NITDA) to enhance staff capacity and efficiency.

“Eventually, there will be no need for downsizing. Instead, we will reposition staff and ensure effective performance,” she said.

Also speaking, Dr Danjuma Kalba, Permanent Secretary, Common Services Office, described PASGA as a major step towards building an efficient, accountable and digitally driven civil service.

According to him, the project aligns with the Federal Civil Service Strategy and Implementation Plan 2025 (FCSSIP25), especially in areas of digitisation, talent management and organisational efficiency.

“As the coordinating ministry and seat of the number one civil servant in Nigeria, the office of the HCSF remains steadfast in leading transformative reforms that uphold professionalism and service excellence,” Kalba said.

Also speaking, Mr Ayo Muritala, Senior Managing Partner, Knewrow Performance Engineering, one of the project’s consultants, said PASGA, also known as Project Phoenix, represents renewal and rebirth in the Federal Civil Service.

“This is more than an audit or data exercise. It is a strategic reform instrument designed to help government understand the people who power the public service.

“It is about data, but beyond data, it is about identity, capability, and national performance,” he said.

The Tide source reports that President Bola Tinubu had earlier directed a comprehensive PASGA across the federal service to enhance professionalism and effective service delivery.

 

 

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