NCDMB Acquires 20% Stake in Major Refinery Project
The Nigerian Content Development and Monitoring Board (NCDMB) has secured a 20% equity stake in a 100,000 barrels per day (bpd) refinery project spearheaded by African Refinery Group Ltd in collaboration with the Nigerian National Petroleum Company (NNPC Ltd).
The agreement, signed on Thursday, positions NCDMB as a key partner in the African Refinery Port Harcourt Limited (ARPHL), which will be co-located with the NNPC-operated Port Harcourt Refining Company Limited in Alesa Eleme, Rivers State.
Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, formalized the deal at the Board’s Abuja liaison office, while Mr. Tosin Adebajo, Managing Director of ARPHL, signed on behalf of the company.
Engr. Ogbe highlighted that this equity investment is the first under his leadership and underwent rigorous technical, commercial, and regulatory scrutiny in line with NCDMB’s Commercial Ventures Investment Policy. He emphasized the Board’s commitment to strong corporate governance, ensuring optimal performance and long-term sustainability of the refinery project.
The investment aligns with Section 70(h) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which mandates NCDMB to support local contractors and Nigerian companies in building capacity and capabilities. The initiative also supports the Federal Government’s strategic policies, enhances job creation, and adds value to the nation’s hydrocarbon resources.
The shares were acquired through the Nigerian Content Intervention Company LTD/GTE, a subsidiary wholly owned by NCDMB. Meanwhile, NNPC Ltd holds a 15% equity stake in the refinery project, following a share subscription agreement executed in 2024.
African Refinery Group had won a competitive bid in 2016 to co-locate a crude oil refinery within the Port Harcourt Refinery Complex (PHRC). The company executed an agreement to develop and operate a 100,000 bpd refinery on 45 hectares of vacant land within the refinery complex. A sub-lease agreement with NNPC in 2019 granted the company a 64-year tenure on 45.466 hectares within the complex.
Under the investment plan, NCDMB will divest its stake by the end of the seventh year from the commercial operations start date.
NCDMB’s past investments in modular refining projects include:
- Waltersmith’s 5,000 bpd refinery in Ibigwe, Imo State.
- Azikel Group’s 12,000 bpd hydro-skimming modular refinery in Gbarain, Yenagoa, Bayelsa State.
- Duport Midstream’s 2,500 bpd modular refinery in Egbokor, Edo State.
These projects are at various stages of operation and development, significantly contributing to domestic refining capacity.
The Waltersmith modular refinery, backed by NCDMB since 2018, has been a benchmark success. It delivers refined petroleum products to nearby markets and generates substantial employment opportunities. The company recently declared a profit-after-tax of N23.6 billion for 2023, with a total dividend of N4.5 billion, pending final approval at the Annual General Meeting (AGM).
As a 30% stakeholder in Waltersmith Refinery and Petrochemical Company Limited, NCDMB received an interim dividend payment of N450 million from the N1.5 billion declared for the 2023 financial year.
With this new equity stake, NCDMB continues to strengthen Nigeria’s oil and gas sector by fostering strategic partnerships and expanding local refining capacity.
