The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has confirmed ongoing discussions with the Nigerian National Petroleum Company Limited (NNPCL) over the possible acquisition and revival of the Port Harcourt Refinery in Rivers State.

PETROAN’s president, Dr Billy Gillis-Harry, disclosed this in an interview with Daily Trust, saying the move is aimed at boosting Nigeria’s local refining capacity and strengthening indigenous participation in the oil and gas value chain.

According to him, reviving the Port Harcourt Refinery would help stabilise petroleum product prices, stimulate economic activities, and align with President Bola Tinubu’s Renewed Hope Agenda.

PETROAN engaging potential co-investors

Dr Gillis-Harry noted that PETROAN is engaging potential co-investors from Ukraine and Georgia, who have expressed readiness to support the project and ensure value addition to the Nigerian economy.

He explained that about $2 billion would be required to kick-start the refinery’s rehabilitation, adding that discussions are ongoing to formalise arrangements, including the signing of letters of interest with investors.

PETROAN expresses optimism in restoration of PHPR

The PETROAN president expressed confidence that the refinery could be restored to operation, stressing that the association aims to play a transformative role in Nigeria’s downstream petroleum sector.

He also reiterated the group’s support for the Dangote Petroleum Refinery, describing it as a major contributor to value addition in the oil industry.

According to him, PETROAN will continue to encourage private refinery development to promote competition, price stability and broader economic benefits.

In its 2025 sector review and 2026 outlook, PETROAN revealed that Nigeria has spent an estimated N11.35 trillion on the turnaround maintenance of the Port Harcourt, Warri and Kaduna refineries over the past decade, yet the facilities remain largely non-operational.

The association stated that approved contracts include $1.5 billion for the Port Harcourt Refinery and $1.48 billion for the Warri and Kaduna refineries combined.

These expenditures, it said, have attracted investigations by security agencies and legislative bodies over allegations of mismanagement and lack of accountability.

PETROAN calls for audits

PETROAN called for forensic audits and stronger accountability frameworks to restore public confidence in investments within the sector.

The association further noted that 2025 marked a significant period for Nigeria’s downstream oil sector, shaped by regulatory reforms, refinery development efforts and growing competition between local refiners and importers.

It disclosed that more than 30 refinery licences, mostly for modular and medium-scale projects, have been issued since the Petroleum Industry Act (PIA) came into force, with about 23 refineries currently under development.

When completed, these projects are expected to add over 850,000 barrels per day to Nigeria’s refining capacity.

PETROAN also reviewed the naira-for-crude policy, noting that while it holds potential for supporting local refining and easing foreign exchange pressure, implementation challenges such as allocation delays and pricing disputes limited its impact in 2025.

It disclosed that more than 30 refinery licences, mostly for modular and medium-scale projects, have been issued since the Petroleum Industry Act (PIA) came into force, with about 23 refineries currently under development.

When completed, these projects are expected to add over 850,000 barrels per day to Nigeria’s refining capacity.

PETROAN also reviewed the naira-for-crude policy, noting that while it holds potential for supporting local refining and easing foreign exchange pressure, implementation challenges such as allocation delays and pricing disputes limited its impact in 2025.

The group added that the shutdown of the Port Harcourt Refinery in May 2025 highlights persistent structural and operational challenges, despite significant public investment in its rehabilitation.