By Patrick Edward

The Nigerian National Petroleum Corporation (NNPC) recently announced the shutdown of Unit 10 in Area 5 of the Port Harcourt Refinery (PHRC), officially citing sustainability concerns. However, the move has ignited a storm of controversy, with insiders suggesting a more troubling reality: the decision stems from the underperformance of the current operations and maintenance (O&M) contractor whose alleged inefficiencies have led to a complete halt in production.

A Shutdown Cloaked in Sustainability

The official narrative from NNPC frames the shutdown as important for operational maintenance.But before the shutdown, the Independent Petroleum Marketers Association of Nigeria has said that the refinery had become “insignificant to the Nigerian petrol market, stressing that the plant did not produce petrol for about three months before its eventual shutdown”.

According to multiple sources, the shutdown was precipitated as a failure to maintain consistent product quality and perform routine maintenance tasks.These shortcomings reportedly rendered operations unsustainable, forcing the unit offline. In addition, Unit 10 of Area 5 (old refinery), had only recently resumed stable operations after years of dormancy. The shutdown not only disrupts production but also casts a shadow over the broader rehabilitation efforts at the Port Harcourt Refinery, one of Nigeria’s most vital energy assets.

The roots of the current controversy trace back to July 2024, when Italian engineering firm Tecnimont successfully completed the rehabilitation and testing of the Area 5 infrastructureold refinery. The project was ambitious, involving the revival of facilities that had been inactive for over a decade. Tecnimont’s work culminated in the reactivation of Unit 10 in November of the previous year, following a prolonged fine-tuning phase.

The plan was to gradually bring additional units—12, 14, and 17—online, thereby completing the full commissioning of Area 5. The Port Harcourt Refining Company (PHRC), acting through the Nigerian Engineering and Technical Company (NETCO), appointed EPROM, an Egyptian O&M firm, to take over operations. This decision marked a significant departure from earlier directives that emphasized the need for an internationally recognized contractorEPROM’s appointment has raised eyebrows across the industry.

While technically a foreign entity, EPROM lacks a robust international portfolio. According to its own website (Projects – EPROM), its only projects outside Egypt are in Nigeria: the Port Harcourt Refining Company and the Warri Refining & Petrochemicals Company. This limited exposure sparked concerns about the company’s capacity to manage a facility as complex and strategically important as Port Harcourt’s refinery. The controversy deepens with allegations that EPROM is employing predominantly Egyptian personnel, many of whom reportedly lack valid Nigerian work visas. Only a handful of local workers—three or four—have been hired, according to internal sources.

This situation appears to contravene Nigeria’s Local Content policies, which are designed to ensure that local communities benefit from industrial operations through employment and capacity building. The apparent disregard for these policies has drawn criticism from labor unions, civil society groups, and local stakeholders. The decision-making process that led to EPROM’s appointment remains opaque. Industry observers have questioned why a company with limited international experience was chosen over more established firms with proven track records.

The shutdown of Unit 10 has had immediate operational consequences. Production targets have been missed, and the timeline for bringing additional units online has been pushed back indefinitely. This delay threatens to undermine Nigeria’s broader energy strategy, which hinges on revitalizing domestic refining capacity to reduce dependence on imported fuel.

Port Harcourt situation as symptomatic of a broader pattern in Nigeria’s energy sector, where short-term decisions often undermine long-term goals. The preference for expedient solutions over strategic planning has, they argue, led to a cycle of underperformance and missed opportunities.

The Way Forward

As the shutdown drags on, pressure is mounting on NNPC and PHRC to take corrective action. The shutdown of Unit 10 at the Port Harcourt Refinery has exposed deep fissures in NNPC approach to managing its critical energy infrastructure. What began as a technical issue has morphed into a broader debate about contractor selection, local content, and institutional transparency. As Nigeria grapples with these challenges, one thing is clear: the decisions made today will shape the country’s energy future for decades to come. Whether the lessons of Unit 10 will lead to meaningful reform remains to be seen.

Patrick Edward, an entrepreneur and engineer, writes from Port Harcourt.