Business
PH Refinery Under-goes Licensing, Minister Defends Rehabilitation Exercise
The Port Harcourt Refining Company is currently undergoing various licensing processes following the supply of crude to the plant after it was mechanically completed in December 2023.
Senior officials at the Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited disclosed this last Saturday. Similarly, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, earlier insisted that the plant was at its final rehabilitation stage.
“The mechanical work at the Port Harcourt refinery has been completed. Also, crude oil has been sent to the plant. What is being awaited now has to do with licensing and the like. Now, these licenses are given based on some set of time-frames.
“Some officials involved in issuing these licenses are still observing the plant. Some of them came in last month and they are still there checking everything. They will also have to test-run the plant and all this will be at their pace. Most of them are foreigners and you can’t rush them.
“They have their integrity to protect, for if anything contrary happens at the refinery, the officials might be held accountable and their insurance firms would have to pay for any damage. So it is not entirely on our part when it comes to the takeoff of the refinery,” a petroleum ministry official, who spoke in confidence due to lack of authorisation to talk about the matter, stated.
In March this year, the Group Chief Executive Officer of NNPC, Mele Kyari, said the Port Harcourt refinery had received 450,000 barrels of crude oil and would begin operations in April. This, however, did not happen.
Kyari had disclosed this at a press briefing after he appeared before the Senate Ad-hoc Committee investigating the various Turn Around Maintenance projects of the country’s refineries.
“We did a mechanical completion of the refinery, which was what we said in December. We now have crude oil already stocked in the refinery. We are doing the regulatory compliance tests that must happen in every refinery before you start it, and I assure you that this Port Harcourt refinery will start in the next two weeks.
“Completing the mechanical work means that you are done with the rehabilitation work, now you have to test to see how it works. Of course, we have also completed the mechanical work on the Warri refinery. It is also undergoing regulatory compliance; processes that we are doing with our regulator, and this will soon be completed and it will be ready.
“Kaduna refinery will be ready by December. We have not reached that stage in Kaduna, but we promise Kaduna will be delivered by December,” the NNPC helmsman had stated.
On the volume of crude pumped to the plant at the time, Kyari had said, “All crude lines are active and have delivered over 450,000 barrels into the Port Harcourt refinery.”
Earlier at a press briefing on developments in the oil sector on Friday, the petroleum minister defended the ongoing work at the Port Harcourt refinery, as he told journalists that it often takes time before refineries start pumping out refined products after their mechanical completion.
Lokpobiri cited the Dangote Petroleum Refinery as an example, stating that the plant did not start releasing refined products immediately after its inauguration by former President Muhammadu Buhari in May 2023.
Dangote refinery first released diesel into the Nigerian market in March 2024, followed by aviation fuel, but has yet to release petrol, which is largely consumed nationwide.
“Port Harcourt refinery is still in the final stage of rehabilitation. After the flares at the refinery in December (2023), a lot of work has to be done. Recall that Dangote refinery was commissioned by (former) President Buhari before he left. But when did they start producing products? It took a long while.
“So it’s not just as easy as Nigerians may think. The best example is that between when Buhari commissioned the Dangote refinery and when it started bringing the products it took a long time. So I believe that within a short time we will get clarity on it (Port Harcourt refinery),” Lokpobiri stated.
The minister, however, stated that though he normally received briefings from NNPC on the status of the plant, he had always asked the company about when the refinery would eventually be completed.
“I would like you to also go to NNPC. They awarded the contract. They report to me. But they awarded the contract. They are the people who are paying for the contract. And it’s always good to get the information right from the source. I get briefed from time to time.
“The same question people are asking me is what I’m also asking them (NNPC). When are we going to actually get this thing done? But they always said, look, Dangote refinery took some time. So it’s not just as easy as we think.
“And I think all of you here are witnesses to the Dangote refinery. When it was inaugurated by Buhari and when they started bringing our products. Even up till now, they haven’t started bringing out PMS. It takes time. But our own as a government is to ensure that we support them in any way we can,” Lokpobiri stated.
He, however, assured Nigerians that the government was working hard to ensure that the refinery commences the release of refined petroleum products in earnest, as this would impact positively on the country’s economy.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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