The Nigerian Senate has launched an investigation into the spendings on the turnaround maintenance of the country’s state-owned refineries. An ad-hoc committee has been tasked with examining all contracts awarded for the rehabilitation of the refineries from 2010 to 2023. This move follows a motion presented by Senator Karimi Sunday, which highlights the urgent need to investigate the projects to uncover waste and prevent further misuse of public funds.
Senator Sunday emphasized that the state-owned refineries have been a significant drain on public finances and have deprived Nigerians of the benefits of being an oil-producing nation. He revealed that Nigeria has spent a staggering N11.35 trillion since 2010 on the renovation of the refineries, yet they remain unproductive. Additionally, he stated that the Federal Government has spent over N6 trillion on fuel subsidy due to the country’s low refining capacity.
Despite the large sums of money spent on rehabilitation and maintenance projects, the refineries continue to operate at a loss. Senator Sunday disclosed that the refineries have made a cumulative loss of N1.64 trillion over the past four years alone.
The investigation will focus on specific refineries, including the Port Harcourt Refinery Company (PHRC), the Warri Refinery, and the Kaduna Refinery and Petro-Chemical Company (KRPC). These refineries have received substantial funds for renovation, yet they remain inactive or underperforming.
Senator Sunday expressed concern that without a thorough investigation, the cycle of awarding unproductive contracts may not end. He warned that these contracts have become channels for siphoning public funds, adding to the financial burden faced by Nigerian citizens.
Several senators voiced their support for the investigation, highlighting the need for proper oversight and accountability. They emphasized that taxpayers deserve value for their money. Senator Adamu Aliero even alleged deliberate sabotage by individuals who benefit from petroleum product importation.
The ad-hoc committee, chaired by Senator Isah Jibrin, will collaborate with various committees to investigate the issue. Their goal is to uncover the truth, prevent waste, and address corruption in the refinery sector. The committee will also examine ongoing works in all refineries and explore strategies to commercialize and ensure profitability.
Furthermore, the committee will invite key stakeholders, such as the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian National Petroleum Corporation Limited (NNPCL), and the Bureau of Public Enterprises (BPE). They will also discuss the nation’s plans for green energy sources in line with the Paris Agreement on climate change.
The Deputy President of the Senate, Barau Jubrin, emphasized the importance of holding accountable those who misused resources meant for the functioning of the refineries. The ad-hoc committee is expected to present its findings and recommendations within four weeks.
