Senate Embarks On Investigating All Refineries
The Senate Ad-hoc committee on Petroleum Refineries turnaround maintenance (TAM) has commenced a thorough investigation into the state-owned refineries in Nigeria, which have been a significant drain on public finances, depriving the citizens of the benefits of being an oil-producing nation.
Led by Kawu Sumaila, Senator representing the Kano South Senatorial District, who serves as the chairman of the committee.
The chairman of the Ad-hoc committee highlighted on Tuesday in Abuja that from 2010 to the present day, Nigeria is believed to have expended 11.35 billion naira, excluding additional costs in various currencies, amounting to 592 million dollars, 4,877 million euros, and 3,455,656.93 pounds on refinery renovations.
Senator Karimi Steve put forth a motion emphasizing the unproductive nature of the refineries, resulting in Nigeria spending nearly 6 trillion on subsidies from 2010 to 2020. Despite the dilapidated condition of the refineries, the operational costs between 2010 and 2020 are estimated at 4.8 trillion naira, with a cumulative loss of 1.64 trillion naira over four years.
Senator Kawu expressed profound dismay at the revelation of the substantial funds allocated to the refineries without corresponding outcomes.
“Consequently, a new committee was formed to investigate all contracts awarded for the refurbishment of state-owned refineries from 2010 to 2023.
“The committee aims to monitor progress on the ongoing refinery works to combat waste and corruption. It will also engage with the Federal Ministry of Petroleum Resources, NUPRC, NNPCL, and BPE to explore strategies for commercializing and enhancing the profitability of state-owned refineries.
“Additionally, representatives from NNPCL, NUPRC, and NLLG will be invited to discuss Nigeria’s preparations for transitioning to green energy sources in alignment with the Far East Agreement on Climate Change, to which Nigeria is a signatory.
“The implementation will involve ensuring the full involvement of the Nigerian midstream and downstream petroleum regulatory authority responsible for oil supply and demand. From the committee’s inception, I recall our on-site assessment visits to the four refineries.
Managing directors informed us that each refinery had a deadline to resume production. The MD of the Refineries indicated it would recommence operations by October of this year, while Wari and Kaduna are expected to follow suit in early 2021.
“Given the necessity for the Ad-hoc committee to revisit the refineries to assess the progress made since our last visit, an interactive session or public hearing will be conducted. In addition to scrutinizing financial records and engaging stakeholders, the committee will address the recent fuel price hike and explore ways to improve the refineries.”
He further urge all committee members to collaborate diligently in revitalizing and reforming the oil sector for a better Nigeria. “I extend my gratitude to my esteemed colleagues, staff, and all participants involved in this crucial assignment.
“The next item on the agenda is the introduction of committee members, starting with the motion’s proponent. The work will proceed accordingly.”
