With oil production resuming at the Port Harcourt Refinery, the Nigerian National Petroleum Company Limited (NNPC) needs to ensure transparent communication about its operations and output to foster trust and accountability.
Development Diaries reports that spokesperson for the NNPC, Olufemi Soneye, recently disclosed in a statement that the Port Harcourt Refining Company (PHRC) had commenced processing crude oil production.
This was after several failed promises regarding the revamp of the refinery.
Meanwhile, according to media reports, oil sector experts have argued that the plant lacks a catalytic platform unit to produce petrol, stressing that it could only refine crude for other products at the moment.
However, the NNPC countered this, saying that plans were ongoing to ramp up production capacity to 90 percent while disputing allegations that there was no product production at the refinery.
While the commencement of petroleum product load-out has been advertised as a monumental achievement, the lack of clear and detailed information about the refinery’s production capacity and product quality raises concerns.
The Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Ahmed Farouk, stated that a milestone had been reached, but he did not provide regulatory specifics about the refinery, particularly the standards of the products from the refinery.
NNPC Ltd Delivers Port Harcourt Refinery, As Plant Begins Truckout of Products. 26th Nov. 2024 [PART 2] https://t.co/UQWyOhOSu4
— NNPC Limited (@nnpclimited) November 26, 2024
From the statement made during the unveiling of the refinery, Farouk noted the prices of petroleum products would come down due to enough fuel supply in the local market, but there were no comments on exact prices.
As it stands, citizens are left speculating about the true impact on the domestic fuel market, particularly in terms of pump prices.
Many citizens are anticipating an impact on pump prices, and this further highlights the need for full disclosure.
Although NNPC executives and government representatives have presented the refinery’s activities as a step towards energy independence, the facility’s actual production capacity (2.8 percent of local PMS demand) indicates that it would have minimal effect on price stability.
According to expert analysis, any possible drop in pump prices may be difficult given the expenses of mixing naphtha and other technical difficulties.
This does not really translate to hope for the common man.
NNPC’s silence on this issue, despite public expectation of more affordable fuel, creates room for disappointment and misunderstanding of the refinery’s potential benefits.
This kind of uncertainty erodes public trust in NNPC’s ability to handle the urgent problems of fuel affordability and availability.
Another critical issue is the refinery’s inability to meet international sulfur content standards due to the absence of a desulphurisation plant.
NNPC has admitted that the refinery will largely produce naphtha, which requires blending with high-RON gasoline to meet PMS specifications, but this has fueled scepticism about the sustainability and profitability of operations.
PRESS RELEASE
NNPC Ltd Reaffirms Progress on Port Harcourt Refinery and Addresses Misleading Claims
The Board and Management of the Nigerian National Petroleum Company Limited (NNPC Ltd.) express heartfelt appreciation to Nigerians for their support and excitement over the safe… pic.twitter.com/RnikcRzB3E
— NNPC Limited (@nnpclimited) November 26, 2024
According to the NNPC, the refinery uses crack C5, a blending ingredient from Indorama Petrochemicals (previously Eleme Petrochemicals), to create petrol that satisfies regulations.
This implies that NNPC will only be able to supply 2.8 percent of the nation’s local demand for PMS, which is now 50 million litres per day on average.
Furthermore, the discrepancies in reported output volumes and operational capacity raise questions about the credibility of the information provided.
The NNPC had earlier stated that 200 trucks will load products daily, but going by its press statement only about 131 trucks would load from the facility daily if the production is sustained.
This mismatch signals a lack of cohesive communication and may indicate operational inefficiencies. Nigerians deserve an accurate understanding of the refinery’s capacity, the nature of its products, and its actual contributions to the petroleum market.
Transparency about limitations along with plans to address them would provide clarity and foster trust.
Selective disclosures, such as emphasising the volume of products loaded without clarifying the blending requirements, could mislead the public about the refinery’s effectiveness in reducing fuel import dependency.
Ultimately, transparency from NNPC is crucial to managing public expectations and fostering accountability.
Development Diaries calls on the NNPCL Group Chief Executive Officer, Mele Kyari, to ensure transparency in the operations of the refinery, particularly regarding its limitations.
Additionally, the NNPCL should provide detailed updates on how the refinery will help lower fuel prices and enhance supply, ensuring Nigerians have a clear and realistic understanding of its impact.
Photo source: NNPC Limited
