…as nation’s 3 refineries largely non-functional despite substantial funding
In light of ongoing allegations of sabotage within Nigeria’s petroleum sector, the Senate on Wednesday expressed concerns regarding the $1.5 billion allocated in 2021 for the turnaround maintenance of the Port Harcourt Refinery, which has yet to yield significant results.
The Senate criticized the neglect of government-owned businesses, contrasting their struggles with the success of private enterprises.
Senate Leader and Chairman of the Senate Ad-hoc Committee on Economic Sabotage in the Petroleum Industry, Senator Opeyemi Bamidele, voiced these concerns during a session with industry stakeholders at the National Assembly Complex in Abuja.
Attendees included Finance Minister, Mr. Wale Edun, NNPC Group Managing Director, Melee Kyari, NUPRC Chief Executive, Gbenga Komolafe, and NMDPRA Chief Executive, Farouk Ahmed.
The Federal Executive Council approved the $1.5 billion investment for the Port Harcourt Refinery’s turnaround under former President Muhammadu Buhari’s administration. Despite this substantial funding, the refinery remains largely non-functional, forcing Nigeria to rely heavily on imported petroleum products.
Bamidele criticized the inefficacy of the refineries despite previous substantial investments. He highlighted the current challenges of irregular petroleum product distribution and hazardous imports, emphasizing the country’s over-reliance on imports despite being a major global oil supplier.
He noted that successive administrations have invested billions in maintaining and upgrading the state-owned refineries in Kaduna, Port Harcourt, and Warri, yet these refineries remain largely ineffective.
Bamidele condemned the treatment of government enterprises as neglected while private businesses thrive and outlined plans for a joint investigation with the House of Representatives into economic sabotage in the sector. He assured that the investigation would be conducted impartially, with no individual or entity exempt from scrutiny.
The committee aims to address fundamental issues threatening economic stability and public health, and to establish a legislative framework promoting best practices and attracting investment in the petroleum sector.
Meanwhile, during a presentation to the Senate Ad-Hoc Committee, NNPCL’s Kyari defended the corporation’s integrity, stating that many issues in the petroleum sector are beyond its control.
Kyari reiterated that the NNPCL is committed to national interests and has no motive for sabotage. He highlighted improvements in production, which have risen from 1.4 million to 1.65 million barrels per day, with expectations to reach 2 million barrels soon. Kyari also noted that NNPCL supports domestic refineries in accordance with existing laws and is focused on maximizing value and profits for the country.
Minister of State for Petroleum, Senator Heineken Lokpobiri, emphasized the need for transparency, calling for the planned public hearing to be broadcast live. He argued that misinformation about his ministry’s role and the involvement of other agencies has clouded public perception.
NMDPRA’s Farouk Ahmed also supported the call for a live broadcast of the hearing. He stressed the importance of presenting their side of the story amid negative narratives about their regulatory practices.
Dangote Refinery’s Group Chief Strategy Officer, Aliyu Sulaiman, confirmed that NNPCL supplies 60% of their crude oil, with the remainder sourced through imports and purchases. He praised NNPCL’s contribution but urged continued support for the refinery’s growth.
The committee’s public hearing is slated for September 10-12, 2024, in collaboration with the House of Representatives.
