The Nigerian Content Development and Monitoring Board (NCDMB) has finalized an agreement to acquire a 20% equity stake in a 100,000 barrels per day (bpd) refinery project developed by the African Refinery Port Harcourt Limited (ARPHL) in collaboration with the Nigerian National Petroleum Company (NNPC) Limited.
The share purchase agreement positions NCDMB as a strategic partner in ARPHL, which is co-located with the Port Harcourt Refining Company Limited, operated by NNPC in Alesa Eleme, Rivers State.
The deal was announced in a statement released by NCDMB’s corporate communications department.
The agreement was signed by NCDMB’s Executive Secretary, Mr. Felix Ogbe, at the board’s liaison office in Abuja, while Mr. Tosin Adebajo, Managing Director of African Refinery Port Harcourt Limited, represented the company.
Ogbe described the equity investment as the first to be secured under his leadership. He emphasized that the proposal underwent thorough technical, commercial, and regulatory evaluations in line with NCDMB’s Commercial Ventures Investment Policy.
“The board has also established a robust corporate governance framework to protect its investment and ensure the refinery project’s optimal performance,” he added.
The investment aligns with NCDMB’s commercial venture program, supported by Section 70 (h) of the NOGICD Act, which mandates the board to “assist local contractors and Nigerian companies in building their capabilities and capacities” to advance Nigerian content development in the oil and gas sector.
The statement further noted that NCDMB’s commercial venture investments aim to support the Federal Government’s strategic policies, generate employment during the construction and operational phases, and enhance the value of the nation’s hydrocarbon resources.
The shares for the ARPHL project were acquired through the Nigerian Content Intervention Company LTD/GTE, a wholly owned subsidiary of NCDMB.
Details of the investment reveal that NNPC Limited holds a 15% equity stake in the refinery project, having executed a share subscription agreement in 2024.
The African Refinery Group, the project’s promoter, secured a competitive bid in 2016 to co-locate a crude oil refinery within the Port Harcourt Refinery Complex (PHRC). The agreement grants ARPHL the right to operate a 100,000 bpd refinery on a 45-hectare plot within the refinery complex.
According to the investment plan, NCDMB will divest its stake in the refinery after seven years from the project’s commercial operations date.
NCDMB’s investments in refining projects also include the Waltersmith 5,000 bpd modular refinery in Ibigwe, Imo State; Azikel Group’s 12,000 bpd hydro-skimming modular refinery in Gbarain, Bayelsa State; and Duport Midstream’s 2,500 bpd modular refinery in Egbokor, Edo State. These projects are at various stages of development and operation.
The Waltersmith modular refinery, in which NCDMB holds a 30% stake, has been operational since 2018 and serves as a proof of concept. It has delivered refined petroleum products to its surrounding areas and created numerous direct and indirect jobs.
The project has also proven commercially successful, with Waltersmith Refinery and Petrochemical Company Limited reporting a profit-after-tax of N23.6 billion for 2023 and declaring a total dividend of N4.5 billion, pending final approval at its Annual General Meeting (AGM). NCDMB received an interim dividend payment of N450 million from the N1.5 billion declared for the year ended 2023.