Business
‘Buhari Rejected Saudi, Qatari Bids For PH Refinery Rehabilitation’
Former Minister of State for Petroleum Resources, Ibe Kachikwu, has disclosed that former President Muhammadu Buhari rejected proposals to hand over the Port Harcourt refinery to private investors, including those from Saudi Arabia and Qatar, for rehabilitation during his tenure.
Kachikwu, also a former Group Managing Director of the then Nigerian National Petroleum Corporation, made the revelation recently while speaking at a business mentorship lecture series organised virtually by the Nigerian Content Development and Monitoring Board.
He recalled that after restarting the refinery in 2015 with local engineers at a cost of less than $40m, his plan was to concession it to private investors, including Saudi Arabia, Qatar and Nigerian consortiums, who had already shown interest.
“If I remember very well, in December 2015, we took the unusual step of reopening the Port Harcourt refinery using local engineers from NNPC who understood the facility and could repair the refineries, and it cost us probably less than $40m at the time.
“So again, I refused to go into this love to turn around maintenances which are costing billions. I never did any.
“My attitude was that the private sector should take over the refinery, pay government licence fees and taxes, and put in the funds to repair it and make it operational.
“There were investors ready to take it, but the proposal was not approved. I believed we should hand over the refinery. Saudi Arabia was ready to take it; Qatar was ready to take it.
“Private Nigerians who have had a bid process put together teams which should have taken over the refinery, paid government licence fees and taxes and some level of joint venture money. And then, go ahead to repair the refinery and make it operational, but it failed because it wasn’t approved”, Kachikwu said.
According to him, when privatisation efforts stalled, he introduced the idea of co-location projects that would allow new investors to build within the premises of the existing plants and share facilities such as storage, pipelines and terminals.
However, he said the government later abandoned that plan and returned to the old model of refinery repairs.
“When that failed because it wasn’t approved, I went to co-location, trying to bring new investments into the same refinery but in a fenced yardage, but be able to share certain facilities like storage, pipelines, terminals and that sort of stuff. When the government abandoned it and said no, they want to go and repair refineries again, we’re still there today”, he explained further.
Kachikwu added that his resistance to costly turnaround maintenance contracts was part of the reason he pushed for private sector involvement.
The former minister said Nigeria could have achieved self-sufficiency in domestic refining earlier if the privatisation and co-location models had been pursued, rather than recurring government-led repairs that have left the refineries moribund.
He recalled awarding licences to nine modular refineries, four of which he said are working today.
Recall that the Port Harcourt, Warri and Kaduna refineries are still not working despite the billions of dollars invested in turnaround maintenance.
The Port Harcourt refinery, which was declared operational last year by the Mele Kyari-led Nigerian National Petroleum Company Limited, was later shut down in May.
While Nigerians called for the sale of their facilities, the new Group Chief Executive of the Nigerian National Petroleum Company Limited, Bayo Ojulari, refused to sell them.
Ojulari had stated that the Port Harcourt refinery was losing as much as N500m every month on operations before rehabilitation works were suspended.
According to him, the refinery was pumping about 50,000 barrels of crude, but less than 40 per cent of the equivalent of what was going in was being processed effectively.
He said, “When I resumed, one of the first priorities I focused on was the refinery. I did a quick review to see if we could quickly fix it. What I found is that we were losing between $300m and $500m on a monthly basis.
“The first thing we said was, ‘Rather than continue to lose, let’s quickly stop and look for a way to put this refinery into a sustainably profitable venture.”
Amid speculations that the refineries may not work again, Ojulari showed strong determination that they will work again.
Contrary to the views of the President of the Dangote Group, Alhaji Aliko Dangote, that the refineries might not return to operations, Ojulari said the NNPC is highly determined to achieve this.
The organised private sector, the Manufacturers Association of Nigeria, petroleum marketers, and other stakeholders have all called for the sale of the refineries, but Ojulari rejected the advice.
In July, Dangote stated that the refineries, which are under the management of the NNPC, had gulped up to $18bn, yet they have refused to work.
Recall that Ojulari himself echoed a similar sentiment in an interview with Bloomberg at the same time in Vienna, Austria, stating that the country had invested heavily in the refineries without getting any tangible results.
He said reviews were ongoing and that would lead the NNPC to do things differently.
“And as you know, we are determined! We are determined to make sure that our refineries work. We’ve been spending a lot of time on detailed reviews (sic), taking all the learnings.
“We are driven by the fact that the Nigerian states and the future of Nigeria’s success are above any individual of us. That’s what drives our determination to ensure that we put a solution that is sustainable for our refineries”, he said last month.
Ojulari, who officially ruled out the sale of the Port Harcourt refinery, reaffirmed his commitment to completing “high-grade rehabilitation” and retention of the plant.
He stated that the position isn’t a shift. Rather, it was informed by ongoing detailed technical and financial reviews of the Port Harcourt, Kaduna, and Warri refineries.
The statement indicted the past NNPC executive, quoting Ojulari as saying that “the ongoing review indicates that the earlier decision to operate the Port Harcourt refinery prior to full completion of its rehabilitation was ill-informed and sub-commercial.”
He was quoted as saying, “Although progress is being made on all three, the emerging outlook calls for more advanced technical partnerships to complete and high-grade the rehabilitation of the Port Harcourt refinery. Thus, selling is highly unlikely, as it would lead to further value erosion.”
Meanwhile, Nigerians are hopeful that more resources will not be wasted on efforts to revamp the moribund facilities.
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As part of its programme to empower Young Nigerians with the necessary employability skills, the Federal Government, through the National Directorate of Employment (NDE), has flagged off the second phase of the “Renewed Hope Employment Initiative” (RHEI).
Performing the ceremony in Port Harcourt, the Director General of NDE, Silas Ali Agara, said the second phase of the programme will absorbed over 41,307 youths across the country.
Agara said the first phase of the programme, which was flagged off December 2024, successfully trained 32,692 unskilled and unemployed Nigerians in demand-driven skills across the 36 states and the Federal Capital Territory (FCT).
According to the DG, who was represented by the Rivers State Coordinator of the Programme, Matthew Amala, “The strategic goals were increasing trainee employability, supporting small scale enterprises, promoting agricultural productivity, improving rural infrastructure and providing transient jobs.”
He said, over 5000 beneficiaries were resettled with loans and starter packs, while linkages to credit institutions for those that could not be accommodated under the Directorate’s soft loan scheme was ongoing.
“As we reflect on the achievements of the first phase of the Renewed Hope Employment Initiative, I’m excited that the second phase is being flagged off today.
“In the second phase, NDE will train 41,307 persons in over 30 skills set, ranging from vocational, entrepreneurial, agricultural, ICT, and activities in the public works sector.
“We have improved and digitalized our processes through a robust registration portal fully equipped with scalable backends and geofenced capabilities.
“This has made our processes more transparent, fair, equitable, as well as providing us with a credible database”, he said.
The DG said at the end of the training, a total of 14,457 will be resettled with starter packs to help them establish themselves in their chosen fields.
“It’s our sincere expectation that the participants would be equipped positively with skills to enhance their employability, foster entrepreneurship mindsets in them and improving livelihoods to contribute to their community and the economic growth of the Nation”, he added.
He said despite the challenges of limited budgetary resources, the NDE remains committed to equipping unemployed Nigerians with demand driven skills in order to empower these individuals to become employers of labour and future wealth creators.
John Bibor & Edidiong Johnson
Former Minister of State for Petroleum Resources, Prof. Emmanuel Ibe Kachikwu, has canvassed that the $450m Nigerian Content Intervention Fund (NCI Fund) be increased to US$1bn.
He said the increase will be deployed to cater for the funding of mega oil and gas projects, setting up of pipe mills and manufacturing of other critical equipment needed in the oil and gas sector.
Kachikwu also recommended that oil and gas producing companies should provide timelines for developing oil and gas blocks, saying same condition should also be for firms that win industry contracts based on commitments of investments.
He made these recommendations on Monday at the Business Mentorship Lecture Series organised virtually by the Nigerian Content Development and Monitoring Board (NCDMB).
The Tide gathered that the webinar drew nearly 500 participants via Zoom and the Board’s YouTube page.
The former minister, who served as the Chairman of NCDMB’s Governing Council from September 2016 to May 2019, stated that a larger NCI Fund will provide seed capital for developing blocks, accessing technology, skill sets and equipment.
According to him, the fund should include contributions from operators, and other investors in the sector and not just government resources, expressing dismay that many awardees of oil blocks in Nigeria treat them like certificates of occupancy for land which has caused huge losses to the nation.
“I like to advise the Government to cancel oil blocks that are not developed after a prolonged period. We need to find a way to force performance in the industry. Some companies get contracts to import pipelines with proviso to invest locally. We need to begin to produce those equipment.
“You’ve to show the joint venture that you are setting up to produce pipes, where is the foreign partner with the funds and technology? You need to give a timeline”, he said.
Speaking on the global investments space and how Nigeria can attract funding to the energy sector, the former minister argued that there was a lot of money waiting to be tapped, saying that however it is only going to countries where there is a perception of regularity.
“Nigeria’s image needs to improve, while the Government also needs to create the right investment climate to attract investment. There’s enough investment money out there if you have a holding of hands.
“They need to portray Nigeria as the place you can put money and get good returns. Government should consider co-investing with private companies if there are good prospect of returns”, he added.
The erstwhile Petroleum Minister lauded the transformation in the oil and gas sector with indigenous firms like Seplat, Aiteo, Oando Energy Resources, and Heirs Oil and Gas and others acquiring assets from divesting international oil companies (IOCs).
“Mere ownership transfers are insufficient without enhanced output, management, revenue returns and compliance with extant laws.
“My greatest fear is that without principled accounting, supervision, and effective oversight, indigenous companies may profit while the federal government loses revenue. There’s the need to involve local communities to avoid past disconnects that fueled conflicts”, Kachikwu said.
He also commended the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, for upholding the agency’s mission and recording significant strides since assumption of office.
Reflecting on the NCDMB Scribe’s pivotal role in shaping the Board, Kachikwu emphasized that advancing local content was a core pillar of his tenure as Minister and chairman of the NCDMB Board, noting that local content is not just a slogan, but rather a tool for industrialisation, job creation, and knowledge transfer.
“There should be consistency of policies. For too long, foreign companies dominated every segment of the sector, while our people remained bystanders.
“My message to young professionals is clear: the oil industry may be facing disruption, but it is also full of opportunities. Careers in petroleum now demand more than technical skills. They require adaptability, creativity, and a deep sense of responsibility to both people and the environment.
“The industry is not just about barrels and dollars. it’s about national survival, community welfare, and the environment. Achieving your career goals is a marathon, not a sprint. Patience and endurance are essential. Self-Belief is Crucial.
“Confidence in yourself and your abilities will fuel your progress and help you overcome challenges. Principles matter: Let your ethics and integrity be a guiding light. Build relevant skill sets. Equip yourself with the skills that make you competitive and adaptable in the job market”, the former Minister urged.
Earlier in his welcome address, the Executive Secretary of the NCDMB’s Director of Capacity Building, represented by the Director of Capacity Building, Engr. Abayomi Bamidele, underscored the Business Mentorship Lecture Series’ role in fostering trends and mind-sets for excellence.
Hee said the lecture series was organised in furtherance of the Board’s mandate in sections 67 and 70n of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, to hold workshops and seminars to promote and advance Nigerian Content.
In his closing remarks, General Manager, Corporate Communications, NCDMB, Dr. Obinna Ezeobi, praised Kachikwu for sharing deep insights which benefitted stakeholders across the public and private sector of the energy sector.
He also thanked the guest lecture for his contributions to the NCDMB, recalling his sign-off on the Waltersmith Refinery investment, which became a successful project and the launch of the US$200m NCI Fund, which has grown into US$450m, now managed by the Bank of Industry and Nexim Bank.
“NCDMB has fully embraced its roles of enabling businesses, in addition to the traditional mandate of regulating and promoting local content. The Board is committed to supporting Nigerians and local oil and gas firms to grow sustainably in the sector, hence it organises the Business Mentorship Lecture Series.
“We want to assure you that this Mentorship series will continue as a key platform for engaging and educating stakeholders of the industry. I also want to urge interested listeners to visit NCDMB’s YouTube channel to watch the recording of the webinar”, he said.
Ariwera Ibibo-Howells, Yenagoa
The Federal Government has embarked on sanitizing the mining industry, as concrete steps are being taken through the Mining Cadastre’s office to put things in order.
Already, some of the mining licences have been revoked, and more mining licences will be revoked, as part of ongoing efforts to sanitise the solid minerals sector, as well as to protect investors from fraudsters.
Director-General (DG) of the Mining Cadastre Office, Obadiah Nkom, who disclosed this on a live conversation on X (formerly Twitter), said the move was aimed at driving transparency and order in Nigeria’s solid minerals sector.
According to the DG of the Federal Government agency, the clean-up exercise, which covers expired, speculative, and inactive titles, is necessary to make room for genuine investors and ensure compliance with the law.
Nkom disclosed that the agency had identified about 4,709 licences, including 1,400 expired titles, 2,338 refused applications, and 971 notifications of grant where applicants failed to pay, which led to an outright revocation by the Minister of Solid Minerals Development, Dele Alake.
The DG stressed that the revocation was not punitive but part of a deliberate sanitisation process to weed out speculators who hoard licences without adding value to the economy.
Nkom explained that the exercise had already boosted investor confidence in the sector.
“When you talk about backlog, for now, the ministry has had reasons to clear or revoke close to 4,709 mineral licenses. There were implementations in terms of revoked expiring titles of up to 1,400 licenses.
“We have had reasons to refuse 2,338 applications in the system. We have had a mineral title notification of 971. Can you imagine 971 notifications of grants that were notified, but did not come to pay.
“There are even instances where some people have collected the grants, but they refuse to pay. So what do we do? So this cleaning exercise that we are doing is to be able to now create that space in the minefield for people.
“So, imagine having over 4,709 erased from our system by way of revocations implemented. It has sanitised our sector, and investors now know that if they are not going to be involved in exploration and value addition, there will be consequences.
“We are cautious. We follow the law. And this is why I repeat, we have had 100 per cent success in litigations because we are an agency compliant with the provisions of the Act.
“Where we are wrong, we do not shy away from trapping ourselves and doing the right thing. I would hope that at the end of the day, we will not have any risk by following the provisions of the Act”, he said.
Recall that the minister in 2024 revoked 924 licenses over failure to pay statutory charges and fees due for the Federal Government through the Mining Cadastral Office.
He warned licensees yet to resume work on their mining projects to do so immediately.
Corlins Walter
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