The Nigerian Content Development and Monitoring Board (NCDMB) has secured a 20% equity stake in a 100,000 barrels per day (bpd) refinery project being developed by African Refinery Group Ltd in partnership with the Nigerian National Petroleum Company (NNPC) Limited.
The agreement, signed on Thursday, establishes NCDMB as a key partner in the African Refinery Port Harcourt Limited (ARPHL), a facility being co-located with the Port Harcourt Refining Company Limited in Alesa Eleme, Rivers State.
At the signing ceremony held at the NCDMB liaison office in Abuja, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, formalized the agreement on behalf of the Board, while the Managing Director of African Refinery Port Harcourt Limited, Mr. Tosin Adebajo, represented the company.
Engr. Ogbe described the equity investment as the first under his leadership, emphasizing that the decision underwent extensive technical, commercial, and regulatory scrutiny, in line with NCDMB’s Commercial Ventures Investment Policy.
He further assured that the Board has instituted a robust corporate governance framework to safeguard its investment and ensure the refinery’s optimal performance.
This investment is in line 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 developing their capacities.
It is also part of the Board’s broader commercial venture strategy aimed at catalyzing federal policies, creating employment opportunities, and adding value to Nigeria’s hydrocarbon resources.
The shares for the ARPHL project were acquired through the Nigerian Content Intervention Company LTD/GTE, a corporate entity fully owned by NCDMB.
Meanwhile, NNPC Ltd holds a 15% equity stake in the refinery project, having executed a share subscription agreement in 2024.
African Refinery Group won a competitive bid in 2016 to co-locate a crude oil refinery within the Port Harcourt Refinery Complex.
The company subsequently signed an agreement to operate a 100,000 BPD refinery on a 45-hectare site within the refinery complex and secured a sub-lease agreement with NNPC in 2019 for a 64-year tenure.
According to the investment plan, NCDMB will divest from the refinery project at the end of the seventh year from the commencement of commercial operations.
This latest acquisition adds to NCDMB’s growing portfolio in the refining sector, which includes investments in the Waltersmith 5,000 BPD modular refinery in Ibigwe, Imo State; the Azikel Group’s 12,000 BPD hydro-skimming modular refinery in Yenagoa, Bayelsa State; and the Duport Midstream 2,500 BPD modular refinery in Egbokor, Edo State, each at various stages of operation and development.
