Senate Probes N11.35trn Expenditure On Moribund Refineries
The Senate has constituted an ad hoc committee to investigate the Nigerian National Petroleum Corporation Limited (NNPCL) over the N11.35 trillion spent on the nation’s four moribund refineries between 2010 and 2023.
Deputy President of the Senate, Jibrin Barau, announced the composition of the committee following the adoption of a motion moved at plenary on Tuesday, by Karimi Sunday Steve, the Senator representing Kogi West.
Two of the nation’s four refineries are located in Port Harcourt, Rivers State, one in Warri, Delta State and one in Kaduna.
Presenting the motion titled, “Urgent Need to investigate the various Turnaround Maintenance (TAM) Projects of Nigerian Refineries to uncover waste and prevent further squandering of scarce public resources,” Karimi said from 2010 till date, the Nigerian government had spent N11.35 trillion on contracts to rehabilitate the four refineries, but they are still unproductive.
“Between 2010 to date, Nigeria is estimated to have spent N11.35 trillion (N11, 349, 583, 186, 313.40) excluding other costs in other currencies, which include $592, 976, 050.00 dollar, 4, 877, 068.47 Euros and 3, 455, 656.93 Pounds, on renovation of refineries, yet they are unproductive.
“Despite the moribund state of the four refineries, the operating costs of these refineries between 2010 and 2020 are estimated at N4.8 Trillion Naira. The refineries are estimated to make a cumulative loss of N1.64 Trillion, within four years.
“Concerned that the Federal Government of Nigeria has carried out rehabilitation projects in Port Harcourt Refinery Company (PHRC) over a period of seven (7) years from 2013-2019 at an estimated cost of N12,161,237,811.61 only, in addition, on the 18th March 2021, a rehabilitation Contract was executed between NNPC/PHRC and Tenenimont SPA at a Lump Sum of $1,397,000, 000.00 only, about N75 billion naira amidst global public criticism.
“Phase 1 of the Project is expected to be completed in 28 Months after the contract, Phase 2 within 24 months and Phase 3 within 44 months of execution. Despite this, the Port Harcourt Refinery remains a money pit. Going by projections and representations from NNPCL the renovation works ought to be completed and operations of the Refinery commenced by June 2023.
“Perturbed that in a bid to revitalize the Warri Refinery, the Federal Government has injected huge Public funds into revamping Warri Refinery & Petrochemical Company limited to the tune of over N28,219,110,067.10 between 2014 and 2019”, he said.
He prayed the Senate to investigate all contracts awarded for the rehabilitation of the refineries during the period under review to prevent corruption in the sector.
When the motion was thrown open for debate, many of the Senators supported it.
At the adoption of the motion, Jibirin, who presided over the plenary, constituted an ad hoc committee to investigate all contracts awarded for the rehabilitation of the four moribund refineries in the country.
Jibirin appointed the Senator representing Kogi East, Isah Jibrin, as the committee chairman while the Chairmen of the Senate Committees on Petroleum Resources Downstream; Upstream; Gas; Finance; Appropriation, and Public Accounts are members.
Other members of the committee included Abdullahi Yahaya (PDP, Kebbi) Adamu Alero (PDP, Kebbi), Ifeanyi Ubah (APC, Anambra) and Mr Karimi (APC, Kogi).
He also directed that the committee should submit their findings to the Senate within four weeks.
Meanwhile, the Senate has mandated its Committee on Downstream sector to invite the NNPCL, Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian LNG Limited (LNG) to explain the nation’s preparation for Green Energy Sources in line with the Paris Agreement on Climate Change.
