Reps Order Probe into $18bn Refinery Rehabilitation Projects

The House of Representatives has ordered a thorough investigation into the persistent non-functionality of Nigeria’s state-owned petroleum refineries in Port Harcourt, Warri, and Kaduna, despite claims that over $18 billion has been spent on their rehabilitation in the past two decades.

The decision came after a motion raised by Lagos lawmaker, Oluwaseun Whinghan, during Thursday, October 9, plenary session, which was presided over by Deputy Speaker Benjamin Kalu.

Nigeria operates four government-owned refineries managed by the Nigerian National Petroleum Company Limited, two in Port Harcourt and one each in Warri and Kaduna.

For years, these facilities have remained idle due to poor management and vandalism, forcing the country to depend on imported fuel.

Whinghan, who represents Badagry Federal Constituency, expressed concern over the state of the refineries and the huge funds spent on their rehabilitation with no visible results.

“The House is worried over the recent public statements by Nigeria’s foremost industrialist, Aliko Dangote, and former President Olusegun Obasanjo, expressing doubts about the viability of these refineries and describing the multi-billion-dollar investments as futile, sparking widespread public concern and outrage over potential mismanagement,” he said.

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He recalled that in 2007, during the administration of former President Olusegun Obasanjo, Dangote and other private investors had acquired the refineries, but the late President Umaru Yar’Adua’s administration later reversed the sale, opting instead for rehabilitation through public funds, which has yielded no significant improvement.

Whinghan also cited recent comments by the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, who admitted that the refineries remain non-functional despite the huge expenditure and suggested the possibility of selling them off.

He said, “We are aware that Nigeria’s economic stability and energy security are inextricably linked to a functional and accountable downstream petroleum sector, particularly following the removal of the petrol subsidy by the current administration, which underscores the urgent need for operational refineries to mitigate economic hardship.”

The lawmaker urged the House to ensure a transparent and time-bound probe into the issue to establish how funds were spent, identify mismanagement, and recommend reforms that would prevent future wastage of public resources.

Following the debate, the House directed its Committees on Petroleum Resources (Upstream, Downstream, and Midstream), Gas Resources, and Public Assets to investigate how funds allocated between 2010 and 2024 were utilised for the rehabilitation of the refineries.

The committees are expected to “ascertain the status of the refineries, examine how public funds were utilised, identify agencies responsible for infractions or mismanagement, and report within four weeks for further legislative action.”

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