Senate Orders Investigation Of N11.35 Trillion Spent On Rehabilitation Of Refineries

The Senate formed a committee on Tuesday to look into N11.35 trillion worth of contracts awarded for the rehabilitation of the four moribund refineries in Nigeria over the course of 13 years.

Barau Jibirin, deputy president of the Senate, asked to submit the investigation report within four weeks. Senator Isah Jibrin Echocho has been made chairman of the investigation committee.

The committee members include Abdullahi Yahaya (PDP, Kebbi) Adamu Alero (PDP, Kebbi), Ifeanyi Ubah (APC, Anambra) and Sunday Karimi (APC, Kogi).

This committee will interrogate the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Corporation Limited and the Bureau of Public Enterprises.

"Between 2010 to date Nigeria is estimated to have spent N11.35 trillion (N11, 349, 583, 186, 313.40) excluding other cost 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," Karimi said, according to PremiumTimes.

Karimi pointed out that these four refineries are in a moribund state and still, their operating costs are estimated at N4.8 trillion between 2010 to 2020.

"The refineries are estimated to make a cumulative loss of N1.64 trillion, within four years," he added.

He went on to share that the federal government has carried out rehabilitation projects in Port Harcourt Refinery Company (PHRC) over a period of seven years, from 2013 to 2019, at an estimated cost of only N12 billion.

Furthermore, a rehabilitation contract was executed between NNPC/PHRC and Tenenimont SPA at a cost of N75 billion on March 18, 2021.

"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," Karimi said.

He continued, "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."

The senator requested to investigate all these contracts in order to prevent corruption.

Adams Oshiomhole, senator of the Federal Republic, also chimed in and asked the investigators to find out why these four refineries became moribund despite being allocated such a hefty amount for their renovation.

"The amount so far spent on the refineries can build brand new ones. Senators must take the issues with all seriousness they deserve," Oshiomhole noted.