The Nigerian Senate has taken steps to address concerns over the massive financial investment made in rehabilitating the country’s moribund refineries. An ad hoc committee has been formed to investigate the contracts awarded for the turnaround maintenance projects of the four refineries.
Senator Sunday Karimi, representing Kogi West, initiated the motion to probe the rehabilitation projects in order to prevent the misuse of public funds. The Deputy Senate President, Senator Barau Jibirin, who presided over the plenary, appointed Senator Isah Jibrin of Kogi East as the committee chairman.
Between 2010 and the present day, the Nigerian government has spent a staggering N11.35 trillion on refinery renovation contracts. Despite this significant expenditure, the refineries remain unproductive.
In addition to the financial burden, the operating costs of the refineries from 2010 to 2020 amount to an estimated N4.8 trillion. Within the span of four years, the refineries have accumulated a cumulative loss of N1.64 trillion. This dire situation raises significant concerns about the effectiveness of the rehabilitation efforts.
Notably, the Port Harcourt Refinery Company (PHRC) has been subject to ongoing rehabilitation projects since 2013, with an estimated cost of N12.161 billion. Furthermore, in March 2021, a rehabilitation contract was executed between NNPC/PHRC and Tenenimont SPA with a lump sum payment of $1.397 billion, amidst global criticism.
The motion also addressed the issues surrounding the Warri Refinery and Petrochemical Company Limited, which has received over N28.219 billion for revamping purposes between 2014 and 2019.
With mounting concerns over these investments, the Senate aims to investigate the awarded contracts thoroughly. The goal is to uncover any potential corrupt practices and prevent further waste of public resources.
During the debate on the motion, several senators expressed their support for the investigation. Adams Oshiomhole, representing Edo North, stressed the importance of effective oversight and ensuring value for taxpayers’ money. He emphasized the need to determine why previously functioning refineries have deteriorated and the extent of the funds allocated and expended.
Senator Adamu Aliero of Kebbi Central highlighted the deliberate sabotage behind the prolonged state of the refineries. He suggested that certain individuals may have intentionally rendered the refineries non-operational to continue importing petroleum products into the country.
The committee, led by Senator Isah Jibrin, will collaborate with the chairmen of the Senate committees on petroleum resources downstream, upstream, gas, finance, appropriation, and public accounts. The committee aims to submit its findings to the Senate within four weeks.
The investigation into the expenditure on refinery rehabilitation projects seeks to address the challenges plaguing the Nigerian petroleum sector and ensure transparency in the allocation and utilization of public funds.
This development underscores the Senate’s commitment to addressing the concerns of Nigerians and demanding accountability from government agencies. The outcome of this investigation will be crucial in forging a more efficient and profitable petroleum industry for the nation.
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