The Nigerian Senate has raised serious concerns over the $1.5 billion approved in 2021 for the turnaround maintenance of the Port Harcourt Refining and Petrochemical Company, noting the lack of significant progress or results despite the hefty investment.
The Senate also announced plans to probe widespread allegations of sabotage within the petroleum sector, particularly regarding the supply of crude oil to domestic refineries.
During a session with key stakeholders in the petroleum industry at the National Assembly Complex in Abuja on Wednesday, Senator Opeyemi Bamidele, the Senate Leader and Chairman of the Senate Ad-hoc Committee to Investigate Alleged Economic Sabotage in the Nigerian Petroleum Industry, questioned the efficacy of the substantial funds allocated for the Port Harcourt refinery. Bamidele highlighted the ongoing dysfunctionality of government-owned refineries, despite the billions of dollars previously invested.
“The Federation is undergoing a truly challenging period,” Bamidele said, addressing the irregular and problematic distribution and supply of refined petroleum products. He lamented the persistent long queues at filling stations, which underscore the country’s heavy reliance on imported petroleum products, despite Nigeria being a significant crude oil producer.
Bamidele noted that successive administrations since 1999 have invested billions of dollars into the maintenance and turnaround of state-owned refineries in Kaduna, Port Harcourt, and Warri, yet these refineries remain non-functional.
“In 2021, specifically, the Federal Executive Council approved $1.5bn for the turnaround maintenance of the Port Harcourt refinery. Yet, this investment has not yielded significant returns,” he stated.
The Senate Leader criticized the disparity between the flourishing private sector and the struggling public enterprises, describing it as “unfair and unpatriotic” to treat government businesses as orphans. He announced that the Senate, in collaboration with the House of Representatives, would conduct a thorough investigation into the alleged economic sabotage in the petroleum industry.
“There will be no room for grandstanding during the investigative hearing,” Bamidele assured, promising that the committee would carry out its mandate with fairness and impartiality.
He emphasized the urgency of addressing the issues plaguing the petroleum sector, noting that the investigation would aim to uncover the factors and forces contributing to the alleged sabotage and to craft a legislative framework that would enhance the industry’s operations.
During the session, several stakeholders, including the Nigerian National Petroleum Company Limited (NNPC), denied any involvement in acts of economic sabotage. NNPC’s Group Chief Executive Officer, Mele Kyari, defended the company, stating, “We are faithful, loyal, and committed to the greatness of this country. We are not criminals, thieves, or saboteurs as being alleged through wrong narratives.”
Kyari highlighted NNPC’s transformation into a profit-making company and noted the recent increase in oil production levels, which he said would soon reach the expected two million barrels per day. He called for the planned public hearing on the alleged sabotage to be televised live, allowing Nigerians to see the truth of the situation.
Other stakeholders echoed Kyari’s sentiments, including the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, and the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, who also urged for the investigative hearing to be televised to ensure transparency.
In his presentation, Aliyu Sulaiman, the Group Chief Strategy Officer of Dangote Refinery, commended NNPC for its support but warned against allowing any monopoly in the petroleum sector. This sentiment was shared by other industry representatives, who called for a competitive market environment to foster investment and prevent any single entity from dominating the sector.
The session concluded with a renewed commitment from the Senate to conduct a thorough and unbiased investigation into the alleged economic sabotage, with the aim of addressing the underlying issues and ensuring the petroleum industry operates in the best interest of Nigeria.