Editorial
Beyond PH Refinery Rehab
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.
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Editorial
WPFD: Nigeria’s Defining Test
Nigeria stands at a critical juncture as the world marked World Press Freedom Day (WPFD) on May 3. This annual observance is a reminder that a free press is central to democratic life, good governance, and public accountability. For Nigeria, it is also a moment for sober reflection on how far the country has come and how far it still has to go in safeguarding the independence of its media.
World Press Freedom Day exists to highlight the fundamental importance of freedom of expression and to honour journalists who risk their lives in pursuit of truth. It underscores the idea that without a free press, societies cannot function transparently, nor can citizens make informed decisions. In countries like Nigeria, where democracy continues to evolve, the observance carries particular urgency.
This year’s theme, “Shaping a Future at Peace: Promoting Press Freedom for Human Rights, Development and Security”, places journalism at the heart of global stability. It emphasises that a peaceful society cannot be built on silence, fear, or manipulated information. Rather, it depends on the free flow of accurate, timely, and independent reporting.
At its core, the theme highlights the role of journalism in fostering accountability, dialogue, and trust. These are not abstract ideals. In Nigeria, where public confidence in institutions is often fragile, the media remains one of the few platforms through which citizens can question authority and demand transparency. When press freedom declines, so too does public trust.
Journalism serves as a foundation for peace, security, and economic recovery. Countries with robust media systems tend to attract greater investment, maintain stronger institutions, and resolve conflicts more effectively. Nigeria’s economic challenges, ranging from inflation to unemployment, require open scrutiny and informed debate, both of which depend on a free press.
However, the issue of information integrity has become increasingly complex in the digital age. Artificial Intelligence (AI) and online platforms have amplified the spread of misinformation and disinformation. In Nigeria, where internet penetration has grown rapidly, false narratives can travel faster than verified facts. This makes the role of credible journalism more vital than ever.
The challenge is not only technological but also ethical. AI-driven manipulation of information threatens to distort public discourse, influence elections, and deepen social divisions. In such an environment, professional journalism must act as a stabilising force, ensuring that truth prevails over sensationalism and propaganda.
Equally troubling is the safety of journalists. Across Nigeria, reporters face growing levels of online harassment, judicial intimidation, and physical threats. Self-censorship is becoming more common, as media practitioners weigh the risks of reporting sensitive issues. This trend undermines the very essence of journalism.
A particularly alarming incident involved a serving minister in the present administration, who openly threatened to shoot a journalist during a televised exchange. Such conduct, broadcast to the public, sends a dangerous signal that hostility towards the press is acceptable. It erodes the norms of democratic engagement and places journalists in harm’s way.
This year’s theme aligns closely with the United Nations Sustainable Development Goal (SDG)16, which promotes peace, justice, and strong institutions. Freedom of expression is a cornerstone of this goal. Without it, institutions weaken, corruption thrives, and justice becomes elusive. Nigeria’s commitment to SDG 16 must therefore include genuine protection for the media.
Historically, the Nigerian press has been a formidable force. From resisting colonial rule to challenging military dictatorships, our journalists have played a central role in shaping the nation’s political landscape. Today, however, that legacy appears to be under strain, as the media operates under what can best be described as a veneer of freedom.
Beneath this facade lies a troubling reality. Journalists are routinely harassed, detained, and prosecuted for performing their constitutional duties. Reports from media watchdogs indicate that dozens of Nigerian journalists face legal threats or arrest each year, often for exposing corruption or criticising those in power.
The Cybercrimes (Prohibition, Prevention, etc.) Act of 2015 has become a focal point of concern. Originally intended to combat cyber threats, it has increasingly been used to silence dissent. Sections 24 and 27(1)(b), in particular, have been invoked to target journalists, bloggers, and social commentators.
Although amendments introduced in February 2024 were meant to safeguard journalists, concerns persist. The law continues to be wielded in ways that stifle investigative reporting and restrict freedom of expression. Legal reforms must go beyond cosmetic changes to address the root causes of misuse.
To safeguard the future of journalism in Nigeria, decisive action is required. The Cybercrimes Act must be revisited to ensure it cannot be weaponised against the press. Law enforcement agencies must operate free from political influence, upholding the rule of law and protecting journalists’ rights. Civil society and international partners must also strengthen independent media through funding, training, and platforms for wider reach.
In this rapidly evolving world shaped by artificial intelligence and digital innovation, Nigeria faces a clear choice. It can either allow press freedom to erode under pressure, or it can champion a truly independent media landscape. The path it chooses will determine not only the future of journalism, but also the strength of its democracy and the peace it seeks to build.
