The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the Port Harcourt refinery is on track to meet its August deadline for resuming petroleum production, with an expected output of 10 to 12 million liters of petrol available to marketers.
Zarma Mustapha, IPMAN’s National Operations Controller, shared this update during an interview with Channels TV on Thursday.
He said the refinery’s operations would significantly boost the country’s daily petroleum supply to around 11 to 15 million liters, enhancing energy availability nationwide.
Mustapha explained that the refinery is set to operate independently, selling its products at market prices with minimal government intervention.
“The Port Harcourt refinery will function independently, selling at prevailing market prices to cover costs,” he said. “It will no longer operate as a government-run entity. I believe the refinery’s reactivation will substantially increase the supply of PMS to at least 11 to 15 million liters daily. I am confident that the August deadline is realistic, and the refinery will soon be fully operational, producing all necessary components at its capacity of 10 to 12 million liters of PMS.”
When asked about the potential impact on petrol prices, Mustapha noted that prices might decrease if the refinery’s operators choose to sell at a subsidized rate.
However, he emphasized that the refinery must cover its operational costs, including repaying the $1.5 billion loan secured for its maintenance in 2021.
He added that since the operators are purchasing crude oil at international prices, they must factor these costs into their pricing strategy to ensure cost recovery.
Despite Nigeria’s status as an oil-producing nation, the country currently lacks functional public refineries.
The four state-owned refineries, located in Port Harcourt, Kaduna, and Warri, have remained non-operational, forcing Nigeria to rely heavily on imported refined petroleum products, which has significantly impacted the economy.
NNPC Group Managing Director, Mele Kyari, recently assured that the Port Harcourt refinery would commence operations this August.
He also stated that the other three refineries in Kaduna and Warri are expected to begin operations in the second half of 2025.
This announcement is part of the government’s ongoing efforts to revitalize the nation’s refining capacity and reduce dependence on imported petroleum products.
However, there is skepticism about this timeline, as Kyari had previously made similar projections that were not met.
The repeated delays have led to doubts about the feasibility of the current deadline.
