Senate launches probe into N11.35 trillion expenditure on refinery turnaround maintenance

The Nigerian Senate has initiated an investigation into the contracts awarded for the turnaround maintenance of state-owned refineries between 2010 and 2023. The move follows the adoption of a motion titled “Urgent need to investigate various turnaround maintenance projects of Nigerian refineries, to uncover waste and forestall further waste of scarce public resources,” presented by Senator Karimi Sunday (APC-Kogi) during a plenary session on Tuesday.

Senator Sunday highlighted that Nigeria had expended an estimated N11.35 trillion on the refurbishment of refineries between 2010 and 2023, despite their continued unproductivity. He pointed out that the federal government had allocated over N6 trillion in fuel subsidies due to the country’s limited refining capacity and had spent almost twice that amount on rehabilitating and conducting turnaround maintenance on refineries in Port Harcourt, Kaduna, and Warri from 2010 to 2022.

Furthermore, Senator Sunday noted that the operational expenses of the refineries amounted to N4.8 trillion between 2010 and 2020. During this period, the refineries were expected to incur a cumulative loss of N1.64 trillion over four years.

The motion highlighted specific cases of delayed renovation projects, such as the Port Harcourt Refinery Company (PHRC), which remained unresolved as of October 24, 2023, despite initial projections. Similarly, the Kaduna Refinery and Petrochemical Company (KRPC) had consumed N2.266 billion over the past decade for rehabilitation without achieving productivity.

Senator Isa Jibril (APC-Kogi), who seconded the motion, expressed concern over the substantial operating costs incurred when the refineries were non-functional. Senator Adams Oshiomhole (APC-Edo) emphasized the Senate’s responsibility for proper oversight to ensure that taxpayers receive value for their funds. Senator Adamu Aliero alleged that certain individuals intentionally hindered refinery operations to maintain petroleum product imports into the country.

In response to these concerns, the Senate directed its ad hoc committee to monitor progress in refinery rehabilitation projects and examine the approaches taken by the Ministry of Petroleum Resources, NUPRC, NNPCL, and BPE to commercialize and ensure profitability for state-owned refineries. Additionally, the committee would investigate the nation’s preparations for green energy sources in line with the Paris Agreement on climate change.

Deputy Senate President Barau Jubrin emphasized that those responsible for misappropriating funds intended for refinery operations should be held accountable. Senator Isah Jibrin (APC-Kogi) was appointed as the committee chairman, tasked with presenting a report within four weeks.

Credit: NAN