Onome Amuge
The Nigerian Content Development and Monitoring Board (NCDMB) has revealed that it has successfully negotiated a 20 percent equity stake in the 100,000 barrels per day refinery project being developed by African Refinery Group Limited (ARGL) in collaboration with the Nigerian National Petroleum Company Limited (NNPCL) in Port Harcourt, Rivers State.
The NCDMB, in a statement released on Monday, disclosed that it had sealed the deal on Thursday through a share purchase agreement that will position the board as a key partner in the ARGL project, co-located with the Port Harcourt Refining Company Limited (PHRC) in Alesa Eleme, Rivers State.
The equity agreement between the NCDMB and ARGL was signed at the board’s Abuja liaison office by Felix Ogbe, NCDMB’s executive secretary, and Tosin Adebajo,African Refinery Port Harcourt Limited’s managing director.
The equity investment, a first for the board under Ogbe’s leadership, according to the NCDMB boss, is a step towards promoting local content and enhancing Nigeria’s refining capabilities.
The successful negotiation and execution of the equity investment by the NCDMB under Ogbe’s stewardship has been described by the board’s leader himself as an important first for the organisation.
Ogbe confirmed that the proposal underwent comprehensive technical, commercial, and regulatory reviews in line with the NCDMB’s Commercial Ventures Investment Policy, before being officially approved and executed.
“The board has also instituted a robust corporate governance procedure that will safeguard its investment and ensure optimal performance of the refinery project.
“The deal is part of the board’s commercial venture programme, which is supported by section 70 (h) of the NOGICD Act, where NCDMB is charged to assist local contractors and Nigerian companies to develop their capabilities and capacities in furtherance of Nigerian content development in the oil and gas industry,” Ogbe stated.
In addition to fostering local content development and enhancing Nigeria’s refining capabilities, the NCDMB’s commercial venture investments are designed to catalyse federal government strategic policies, generate employment opportunities throughout the project’s construction and operational phases, and maximise the value of the country’s hydrocarbon resources.
The board’s purchase of the equity shares in the ARGL project was executed through the Nigerian Content Intervention Company Limited/Guaranteed (NCICL/G), which is wholly owned by the NCDMB, providing the necessary corporate vehicle for the investment.
Further details of the equity investment revealed that the NNPCL holds a 15 percent stake in the refinery project, having executed a share subscription agreement in 2024, cementing its involvement in the venture.
The promoters of the project, African Refinery Group, emerged victorious in a competitive bidding process back in 2016 for the opportunity to co-locate a crude oil refinery within the Port Harcourt Refinery Complex. A subsequent agreement was executed, granting ARGL permission to develop a 100,000 barrels per day refinery on 45 hectares of land within the battery limit of the existing refinery complex.
