USAfrica magazine (Houston) and USAfricaonline.com, first Africa-owned, US-based newspaper published on the Internet.
Mele Kyari, the Group Managing Director/ Chief Executive of NNPCL has pulled it through, after all. One of the public refineries (in Nigeria) has roared back to life. The Port Harcourt Refinery is fixed and about 200 tankers have rumbled through the forests and through the highways to gather at the famous refinery to load gasoline.
Our memories of unmet timelines and dashed hopes have faded with that piece of news.
After seven deadlines failed to bring the expected relief, Mele Kyari advised himself not to make promises any more. He elected preference to spring a surprise on the nation. He has done well and the joy of the hour has overshadowed the pains associated with unfulfilled promises of the past months.
This goes to once more demonstrate the importance of the inalienable Law of Movement, the essence of motion in the lives of all mobile creatures, men and animals. How can we forget the enthralling, indeed enchanting spectacle of columns of ants — soldier ants when they file past early in the morning, or acrobat ants, yellow crazy ants or fire ants? Creation is governed by the Law of Motion. Every animate entity is driven by motion. A man who is inactive soon becomes unwell. A man tied to his sick bed for a considerable length of time may lose the ability to walk and will have to relearn how to walk again. Not walking or exercising his limbs has violated the Law of Motion. Energy drives motion and motion is inherent in energy. Carbohydrates supply the energy to power man’s movement, nourished by the radiations of the inner man.
It is, therefore, not for nothing that health experts enjoin us to take a walk from time to time. It is for good health. For automobiles, it is premium motor spirit, alias PMS, also called petrol. The inclusion of spirit in its nomenclature is not without significance. Spirit is a precipitation of Life.
As I stated in September 2024, almost 90 days ago, the absence of motion is absence of life. Motion is life itself. Through motion when we sleep we move from one end of the bed to the other. By extension motion governs all economic activities and the link and vehicle to them are powered by energy which is why no government may attempt to hinder its unfolding and activities. A careful thought will need to be given to the cost implications of energy policies to trigger movement and flourish. We can all see the economic downturn the careless, precipitate government policy on energy management has cost the nation by way of hyper-inflation and disruption to economic activities with manufacturing companies taking a flight out of the country.
Aliko Dangote gallantly rose to the occasion to save the country. Mele Kyari has woken from his prolonged slumber; he has delivered one of the four public refineries. He deserves our kudos and encouragement not to rest on his oars.
In August 2024, NNPCL revealed its plans to secure the involvement of private operators in managing the Kaduna and Warri refineries. At the time, NNPCL spoke of its desire to collaborate with credible operations and maintenance (O&M) firms. Whether this plan will delay the rehabilitation of these two other refineries is not yet clear. But President Bola Tinubu, pleased with the successful rehabilitation of the Port Harcourt Refinery expressed optimism about the Warri and Kaduna refineries. While congratulating Mele Kyari on the success with Port Harcourt, the President urged him to from henceforth turn to these refineries to bring them back on stream as well. His Special Adviser on Media and Public Communications, Sunday Dare, gave hints of privatization. He tweeted: “The full privatization of Port Harcourt, Warri and Kaduna Refineries is in progress.” He went on: “With full local refining gradually being met, the days of fuel queues will end.”
The privatization, of course, is expected to return the country to the good old days when the first petroleum refinery in Nigeria, NPRC Refinery at Alesa-Eleme near Port Harcourt, was established. At the time, it was a 50/50 joint venture owned by Shell and BP. Run efficiently by BP, it was a huge commercial success, a profitable business concern. When it was commissioned it was producing 38,000 barrels per day. With increases in local demand, the capacity was increased to the vaunted 60, 000 barrels in 1968.
The Federal Government came into it by first acquiring 60 per cent equity, albeit in compliance with OPEC decision at the time, 1974, and finally it took 100 per cent equity in 1978. The government, a military administration, attributed the acquisition to reluctance of private sector interest in refinery because they saw it as highly capital intensive. Between 1975 and 1989, the Federal Government built Warri, Kaduna and Port Harcourt Refineries– that of Port Harcourt adjacent to the old refinery such that they are referred to as a two-arm refinery. The late General Yar’Adua had said at the time that the latter refinery was built mainly for export.
Experts say the greatest challenge before the management and operators now is the plant’s technical integrity for safe and continuous operations. The installed capacity of the refinery is 60,000 barrels a day which was achieved in 1968. The last time this old refinery was successfully operated was in 1989. The new 150, 000 bbl/d plant was mechanically completed in December 1988 and it went into operation in March of the following year, 1989, after a successful contractual performance test for all the units.
The first attempt to integrate the old crude oil unit with the new plant in 1989 was unsuccessful. It was the same story in 2014 when a South Korean company was invited to assist the refinery management’s efforts. Because many failed sections could not be renewed, even with some equipment repairs, the effort was abandoned.
The public refineries had a combined capacity of 445,000 barrels per day. They eventually rolled out, producing what satisfied the nation by 1991. Between 1990 and 1992, Nigeria was self-sufficient in petroleum products from the three NNPC refineries.
The Warri and Kaduna refineries produced over 70 percent capacity, churning out Premium Motor Spirit. Port Harcourt Refinery was producing above 90 percent capacity and there was enough for export to Ghana, Togo and some other West African countries. In addition 30, 000 dwt vessels were transported to Lagos by sea every other day, and PMS, AGO and Kerosene were sent through PPMC pipelines to Aba and Enugu depots. Kaduna (KRPRC) was pumping all products by PPMC pipeline through Gusau and road tankers in the North. Warri (WRPC) was pumping products through PPMC 2C pipelines from Mosimi to Ibadan.
The deterioration of the refineries and in attendant activities began in 1993 gradually failing to produce above 20 percent of their combined capacity but the final collapse occurred in 2019.
While President Tinubu refines his thoughts on privatizing the public refineries, Mele Kyari should concentrate his efforts in bringing them to life in the meantime. In that way there will be a surfeit of petroleum products in the country as well as the much desirable competition
