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PH Refinery Ends 2020 In Operating Losses Spends N19.215bn Admin Cost, N22.55bn On Salaries, Others
The Port Harcourt Refinery Company (PHRC) has ended the 2020 financial year with huge operating losses while amassing colossal expenses in administrative overheads and salaries and allowances of staff, without generating a dime.
The local refinery, which is managed by Ahmed Dikko, an engineer, reported no income in 2020 but incurred administrative expenses of N19.215billion while spending N22.55billion of payment of salaries, wages and other benefits to unproductive workers.
These revelations were contained in the current Nigerian National Petroleum Corporation (NNPC) Financial Report.
Worse still, the refinery, which is one of the subsidiaries of the Nigerian National Petroleum Corporation (NNPC) managed by Mele Kyari, employed average of 487 new staff members in 2020.
To show the high level of financial recklessness going on at the mismanaged refinery, the 487 new workers are being paid N3.93billion annually, indicating that each of them takes an average of N8.072million annually or N672,713 monthly.
The amount they earn monthly is about the annual salary of a normal Level 8 Federal Government worker.
Between 2019 and 2020, the refinery employed 1,162 new staff, paying N41.163billion in salary and wages, according to experts’ calculations of the company’s wage data on its financial statements.
Out of the 487 staff members employed in 2020, 430 were senior and management staff, amounting to 88.2 per cent, with huge financial implications.
Only 57 were junior staff members.
Also, out of 675 staff engaged by the refinery in 2019, 656 were management and senior staff, representing 97 per cent of the total, with huge financial implications.
“It is looking like jobs for the boys at our dear refineries. And I wonder, most of these guys are earning heavy wages,” US-based Financial Consultant, Ellam Ogochukwu said.
“Whoever is running that enterprise deserves to answer several questions,” she said.
Also, staff pension, gratuity and ‘long service award’ gulped N77.76billion in 2020 as against N63.41billion the previous year.
Surprisingly, under Dikko and Kyari, the PHRC’s unproductive staff were allowed to take car loans, compassionate loans and advances valued at N1.001billion in 2020.
The amount was N597.297million in 2019.
In 2020, this refinery, which made no revenue, incurred a comprehensive loss of N53.179billion.
In the previous year, the company made no revenue but incurred N50.530billion in comprehensive loss.
Between 2017 and 2020, the company comprehensively lost N241.609billion.
Its revenue within this period was merely N6.27billion.
“This refinery did not produce oil. What you have is that some people just iron their clothes, go to work and come back at the end of the day without adding to the productivity of the company,” Oil and Gas Analyst at Lagos-based Chapel Hill Denham, Mustapha Wahab said.
The NNPC Managing Director, Mele Kyari, is the chairman of Port Harcourt Refinery.
He is followed by Ahmed Dikko (MD); Babatunde Sofowora (Executive Director of Services); Reginald Udeh (Executive Director, Finance and Accounts); James Ifeanyichukwu Ajibo (Executive Director, Operations); and Awaisu Muazu (late, served till July, 2020).
These directors took N99.742million as emoluments in 2020, a 67 per cent increase from N59.650million they took in 2019.
In 2019, the Port Harcourt Refinery did not record any revenue.
Yet, it reported N25.19billion in expenses.
Six directors collected N59.65million in fees, meaning that each of them received an average payment of N9.94million a month in 2019.
According to the NNPC, names of the six directors in 2019 were: Group Managing Director of NNPC, Malam Mele Kyari; Managing Director Abba Bukar (who retired in March, 2020); Executive Director of Services, Babatunde S. Sofowore; Executive Director of Operations, Ganiyu Abiodun Owolabi; another Executive Director of Operations, Engr Abel N. Imonighavwe; and Executive Director of Finance and Accounts, Mrs Aramide M. Ekundayo.
Salaries, wages, allowances, redundancy and pension costs gulped N22.195billion.
What that means is that, on the average, each staff member received N32.88million in 2019 from a company that made no revenue.
This amounts, on the average, to N2.74million each month.
Total salaries and pays received by staff of Port Harcourt Refinery between 2017 and 2019 amounted at N80.57billion.
But revenues received by the company within the period were estimated at N6.27billion – implying that the NNPC sought N74.3billion from outside the refinery to pay staff salaries.
Rather than privatise the refinery, the NNPC chose to pump an equivalent of 4.5 per cent of Nigeria’s 2021 budget ($1.5billion) into the refurbishment of a refinery that comprehensively lost N206.069billion between 2017 and 2020.
Wahab said that the investment in the refinery made no sense.
“Dangote Refinery is coming on board and can process about 650,000 barrels per day of crude oil – highest in the world. NNPC has taken 20 per cent stake in Dangote.
“Why then are you resuscitating Port Harcourt Refinery? We have done the analysis at Chapel Hill Denham and found that government should be spending $3billion or more to ensure efficiency of the refinery. So, it does not make investment sense because you are not going to compete with yourself,” he said.
“Two, some countries are exiting low-carbon energy sources and migrating to clean energy. So, after rehabilitating Port Harcourt Refinery, for how long will you enjoy its benefits, given that your market is not just Nigeria but also those countries exiting what you intend to sell to them?”, he asked, urging the Federal Government to concession it for optimal benefits to the Nigerian economy.
Also, Oil and Gas Governance Consultant, Henry Ademola Adigun, said that the refinery was badly managed.
“The point is that the refineries are still badly managed. The faster the corporation becomes a limited liability company, the better,” Adigun said.
“You have a refinery not producing anything and not making revenues but salaries are being paid. How did the NNPC make the profit they said they made when the inefficiencies are there? The profit and loss do not show anything. They simply want to make it attractive to the stockman.”
He said there was no cost-cutting by the NNPC or the refineries, adding that there were also “no innovative efficiency, no restructuring or replanting and no cost-saving on salaries and wages.”
Former President of the Nigerian Society of Petroleum Engineers, Joe Nwakwue, said that the only thing that the corporation could have done was to sell off the refineries.
“If you have a factory and is not producing, you will have to pay the gate man and the even the insurance company.”
The PHRC was commissioned in 1965.
It was made up of two refineries: the old refinery commissioned in 1965 with capacity of 60,000 barrels per stream day (bpsd) and the new refinery commissioned in 1989 with an installed capacity of 150,000bpsd, according to the NNPC.
It has a capacity of 210,000bpsd with five process areas.
In 2000, the then government of Nigeria shut down the refinery for turnaround maintenance.
Other three refineries in the country were also expected to undergo a similar process, Oil & Gas Journal said.
As of that time, $364million had already been spent on endless turnaround maintenance (TAM) services.
About $25billion has been spent on turnaround maintenance in the past 25 years.
The Institute for Global Energy Research, in a 2004 article, said the barrage of corruption, poor management, sabotage and lack of the mandatory turnaround maintenance (TAM) every two years had made all the refineries inefficient, making them operate at about 40 per cent of full capacity.
The NNPC said in April, 2020, that it would hand over the four refineries in the country to a private firm to manage.
“We are going to get an O&M contract; NNPC won’t run it. We are going to get a firm that will guarantee that this plant would run for some time. We want to try a different model of getting this refinery to run. And we are going to apply this process for the running of the other two refineries.”
However, this has not happened.
Rather, the corporation has sought money to rehabilitate the failed refineries.
It has prided itself on cost-cutting efficiency, but its refineries have incurred humongous losses.
Analysts say NNPC has no cause to hold onto the running of the refineries, having shown no capacity to manage it.
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We Support Rivers Workers To Feel Valued, Productive, Says Fubara …Inaugurates Bayelsa Labour House
Rivers State Governor, Sir Siminalayi Fubara, has explained that in the heat of political crisis staged against his administration in 2023, he committed to improving the welfare of Rivers workers in order to have a well-motivated workforce to achieve the goals of the Rivers First mantra.
The Governor stated that the resultant industrial harmony has now become unprecedented as workers feel more valued, supported, and resolved to be more productive on an increased efficiency and profitability scale.
Governor Fubara gave the explanation while inaugurating the one-storey twin-building Labour House constructed by the administration of Governor Douye Diri, in Yanagoa City, the Bayelsa State capital, yesterday.
The Governor recalled that while en-route Abuja for a reconciliatory political meeting to find solutions to the 2023 political crisis, his mind kept drifting to what could be done to give hope and cushion the hardship faced by Rivers workers.
Governor Fubara said he made the decision, therefore, to pay Christmas bonus of N100,000 to every worker, across grade levels in December, 2023, and extended the gesture to retirees in 2024.
The Governor stated: “On the 18th of December, the year of Our Lord 2023, I was on my way to Abuja for a reconciliatory meeting, and I was thinking: what will I do for my people – my primary constituency, who are the civil servants?
“We all know that the salary is not enough during the Christmas period. I knew we had a lot of challenges at that time, and it would be difficult for me to do the 13th month.
“But, however, even if I had to do the 13th month, it would also be a cheating to the lower level workers because some of them would have less than N100,000. So, I decided that I was going to do a bonus of N100,000 to all workers. That was my meeting with the Accountant-General while I was on my way to Abuja.”
Governor Fubara said: “After the meeting, I was weakened in my spirit. But on my way back, I said no matter the sadness, I still need to make my people happy.
“And even in the face of that most difficult time of our administration, we made all the civil servants very happy by giving everybody N100, 000 for Christmas that year.”
Governor Fubara pointed to the letter of appreciation written to him by the leaderships of Nigeria Labour Congress (NLC), and the Trade Union Congress (TUC) due principally to the fact that the gesture was extended to all pensioners in 2024, while also seeking to give him an award of recognition.
The Governor stated that what had been done has contributed to the industrial harmony enjoyed in Rivers State, as according to him, every labour issue has also ended on the dialogue table.
Governor Fubara said: “It is not because we are meeting all their needs, but because we are putting human face to governance. We are not running it like Nebuchadnezzar’s time.
“We are not running it like the Babylonians. We are running it with the Jesus style where love takes the lead over everything. Where love is what should be in front and behind.”
Governor Fubara noted that what the Bayelsa State Government has done shows there is good relationship existing between labour and the administration of Senator Diri.
The Rivers State Governor advised the organised labour in Bayelsa State to consider the gesture, not as a right but a privilege so that they can embrace it wholeheartedly, defend, cherish, and protect it, and ensure that nobody comes between them and the government to cause friction.
Governor Fubara also expressed sadness over the demise of Chief Edwin Clark, a leader, he noted, will be remembered for his positive impact on many aspects of national and régional issues.
He said, “We are here, we just observed a minute silence for the death of our hero, Pa Edwin Clark. What is he remembered for? For his courage, truthfulness, doggedness, and the survival of this region.”
Governor Fubara told Senator Diri: “I want you to continue to stand for same thing, and I can see that you are standing for what is right. That is what history will remember you for.
“History will not remember anyone for any destructive thing, don’t deceive yourself. Money and material things cannot be taken for a good name. So, please continue to do what is right. History and the good people of Bayelsa will forever remember you.”
Governor Fubara assured that his administration will promote a robust relationship between Rivers and Bayelsa, unlike what it was 15 years ago, which is why all legal battles hitherto instituted in court have been withdrawn and would be settled out of court.
He added, “That is the first thing to show our commitment that we are in a mutual relationship and ready to make progress. You said it here, Rivers cannot develop without Bayelsa. Bayelsa also cannot make progress without Rivers. That is the truth.”
In his speech, Bayelsa State Governor, Senator Douye Diri, said the project was started by the administration of his predecessor, Senator Seriake Dickson, but quickly added that he has completed it to provide the organised labour in the State a place to conduct their activities, while using it as a platform to voice their concerns, access support services, and engage in constructive dialogue with his administration.
Senator Diri, who commended Governor Fubara for his exemplary labour-friendly policies that have promoted workers’ welfare and industrial harmony, said his administration has so far paid N20billion to servicing pensions and gratuities, hoping to upset all outstanding indebtedness by the end of his second tenure.
In his remarks, Bayelsa State Commissioner for Labour, Employment and Productivity, Mr Odoko Saturday Omiloli, said the magnificent Labour House is a testament of the commitment of the Prosperity Administration of Sen. Diri to promote the welfare and well-being of workers in the state.
In their joint address, both Trade Union Congress (TUC) and Nigeria Labour Congress leaders thanked Governor Diri for building a befitting edifice for them, and pledged to sustain support to his administration.
President Bola Tinubu has expressed sadness over the passing of former Federal Commissioner for Information and respected leader of the Pan-Niger Delta Forum, Chief Edwin Clark.
Tinubu’s condolence message was contained in a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, yesterday.
Tinubu said, “He led an illustrious life marked by dedicated service, at different times, to the nation and his community as a councillor, state and federal cabinet member.
“He was also a passionate advocate for resource control, economic and environmental justice in the Niger Delta.”
The statement reads: “On behalf of the federal government, the President extends his condolences to the Edwin Clark family, the Ijaw nation, the people of the Niger Delta, and the government of Delta State. President Tinubu mourns Chief Clark and describes his passing as a deeply sobering loss.
“Reflecting on the life of the late statesman, the President says Chief Clark was a towering figure whose influence was felt across Nigeria’s political firmament for nearly six decades. The President states that Chief Clark was a courageous leader who stood for what he believed in and was never afraid to stand alone in the face of injustice.
“Chief Clark spoke for the Niger Delta. He spoke for the nation. His views and interventions on national issues were distinct and patriotic. Pa Clark, a lawyer and educationist, believed in a united Nigeria, and until his last breath, he never stopped reaching out to people from different parts of the country to work together to preserve national unity based on justice and equity.
“As an astute politician, his political opponents never doubted the weight of his words, his confidence, and his conviction when he spoke. Indeed, a patriot has transitioned to the great beyond. History will remember him as a man who fought gallantly for the rights of the people of the Niger Delta, unity in diversity, and true federalism. I know many generations will remain proud of how his efforts contributed to national prosperity and stability.”
Tinubu prayed for divine comfort for Chief Clark’s family, friends, and all those affected by this significant loss.
Clark died on Monday at the age of 97.
His demise was announced by a representative of the family, Prof. C. C. Clark, in a statement Tuesday.
The statement read, “The Clark-Fuludu Bekederemo family of Kiagbodo Town, Delta State, wishes to announce the passing of Chief (Dr.) Sen. Edwin Kiagbodo Clark OFR, CON on Monday, 17th February 2025.
“The family appreciates your prayers at this time. Other details will be announced later by the family.”
Clark’s death is coming on the heels of the passing of Afenifere leader, Pa Ayo Adebanjo, who died at the age of 96 just a few days ago.
Both Clark and Adebanjo are known for contributing to the political development of the country.
Meanwhile, former President Muhammadu Buhari has also mourned Clark, describing him as an iconic statesman.
Buhari, in a condolence statement yesterday, said he death of Clark had caused deep sorrow in his heart and that of many in the country.
The statement read in part: “Late Chief Edwin Clark was a leader dedicated to reforms whose commitment to the development of his community and the nation would always be remembered. His death caused deep sorrow in his heart, and that of many, and his departure was a loss for the nation.
He is an iconic statesman”.
The former president maintained that the late Ijaw leader had left an indelible imprint on the nation and that in his passing, Nigeria had lost an iconic statesman and a distinguished leader.
He added that his commitment to the country’s unity would be respected by generations to come.
Buhari further urged the Clark family and fellow citizens in the Delta region of the country to uphold his numerous achievements.
Also, former Senate President, Bukola Saraki, has described the late PANDEF leader as a man of great conviction.
In a brief message posted via his verified X handle, yesterday, Saraki praised the elder statesman’s unwavering conviction, stating that Clark stood firm in his beliefs until the very end.
“Chief Edwin Kiagbodo Clark was a man of great conviction who stood firm for what he believed in—right to the very end,” Saraki wrote.
He added that Clark’s passionate advocacy for justice and equity would be deeply missed by Nigeria, the Ijaw nation, and the Niger Delta, for whom he was a tireless advocate.
“His death marks the end of an era—an era of principled leadership. He was one of the movers and shakers of the Second Republic Senate, in which my father served as the Leader of the Senate.
“On behalf of my family, I extend our heartfelt condolences to the Clark family, the entire Ijaw community, the people of the Niger Delta, and all Nigerians who mourn the loss of this extraordinary leader,” the former Senate President stated.
A towering figure in Nigerian politics and a relentless advocate for the rights of the Niger Delta, Clark was a lawyer, administrator, nationalist, and freedom fighter.
He served as Commissioner for Education in the Mid-Western Region from 1968 to 1971, and later as Commissioner for Finance and Establishment in the defunct Bendel State between 1972 and 1975.
At the federal level, he was appointed Commissioner for Information in 1975 and subsequently became a Senator from 1979 to 1983.
Beyond his political career, Clark was a leading voice for regional and national unity. He was also known for mediating peace among warring communities and politicians in the Niger Delta region.
Rivers State Governor, Sir Siminalayi Fubara, has explained that his administration is courageously executing strategic projects that are opening up Kalabari land for unprecedented development and economic growth.
Governor Fubara made the explanation when he received on solidarity visit, a delegation of monarchs, political leaders, elders, women and youths of Kalabari Ethnic Nationality, led by the Amanyanabo of Abonnema, King Disreal Gbobo Bobmanuel, at Banquet Hall of Government House in Port Harcourt, last Tuesday.
The Governor stated that while previous administrations avoided executing the original plan for the Trans-Kalabari Road project due to cost implications, he has ventured into it, and driving the process steadily in order to link Kalabari land to the State capital.
Governor said: “Somebody said, if I don’t do it for my people, who will do it for them. We ventured into the Trans-Kalabari Road, we didn’t close our eyes. Our eyes were open because we knew what we were entering into.
“It is not a joke; it is a big project. We believe that at the end of that project, the level of development that it will attract to that line of entry into Kalabari will be very unprecedented.
“Issues of insecurity from our waterways will be reduced because, at that point we are doing road, people won’t be using the river anymore. The cost of living will also be cheaper.”
Governor Fubara further asserted: “So, you understand that your interest, your safety, your development is key to us. It is not about the number of years that we are going to be here; what is important to this government is the impact we make while we are here.”
Responding to their unanimous endorsement to see him run for a second term in office, Governor Fubara said power belongs to God, and He gives it to whoever finds favour in His sight.
Governor Fubara, however, stated that if God so approved of it, even those who are regrouping against him will not see the path God will lead him because they cannot scuttle such plan.
He added, “Power belongs to God. So, you see, I like believing that we don’t have any problem. When we get to the bridge, we will cross it. If we can break the bridge, Moses will come and create a road for us. So, you don’t need to worry.
“We will cross the bridge. We will cross it in a way that our enemies will be struggling; they won’t see where we are passing. So, don’t worry.”
Governor Fubara acknowledged the immense support to him by Rivers Ijaw, and urged particularly the Kalabari people to stand with honour in their unalloyed support for his administration, which will neither abandon them nor fail to deliver quality projects to the people.
Governor Fubara also responded to their requests and informed them that his administration has completed the Emohua/Tema Junction Road project, and ready to inaugurate the Degema Zonal Hospital in May.
He said the Health Commissioner has been directed to assess the state of the Abonnema General Hospital for immediate rehabilitation, while promising to address the issues of shore protection in the area.
Governor Fubara assured that with the Abonnema sandfilling works completed, the phase two will commence that will include Buguma, explaining that the Commissioner for Works has been tasked to do the assessment immediately.
On the request for the establishment of tertiary institution in the area, Governor Fubara said his administration is already inaudated with memos asking that the off-campus of Rivers State University established previously be revised because it has become difficult to sustain them, but quickly added that the government will consider the establishment of a viable institution that will provide technical and entrepreneurial skills to the people in a sustained manner.
Reading the address of Kalabari Ethnic Nationality, Chief Pawariso Samuel Horsfall, announced that the entire Kalabari people have unanimously endorsed Governor Fubara for a second term, and vowed to mobilise Rivers people to ensure electoral victory for him in the 2027 gubernatorial election.
In his speech, the leader of the delegation and Amanyanabo of Abonnema, King Disreal Gbobo Bobmanuel, expressed the profound thanks of the Kalabari people to Governor Fubara for his genuine love for them, as evidenced in the types and quality of development projects delivered or being executed in the area.