Nigerian Senate Launches Probe into N11.35 Trillion Refinery Contracts
The Nigerian Senate has initiated an ad hoc committee to probe contracts worth N11.35 trillion awarded over a 13-year period for the rehabilitation of state-owned refineries, Excel Magazine International has gathered.
The Senate also tasked the committee with interrogating entities such as the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Corporation Limited, and the Bureau of Public Enterprises to determine the most effective approach for commercializing state-owned refineries.
Senator Isah Jibrin Echocho was appointed as the chairman of the committee, with other members including the heads of the Committees on Petroleum Resources (Downstream, Upstream, and Gas), Finance, Appropriation, and Public Accounts. They have been given a deadline of four weeks to submit their report.
The decision to establish this committee resulted from a motion put forth by Senator Sunday Karimi during Tuesday’s plenary.
The motion expressed concern over the ongoing unproductiveness of Nigeria’s refineries despite substantial expenditures on repairs and renovations.
Senator Karimi revealed that between 2010 and the present, Nigeria spent N11.35 trillion, along with significant expenses in other currencies, on refinery renovations. Even with these investments, the refineries have failed to operate effectively.
Operating costs between 2010 and 2020 amounted to an estimated N4.8 trillion, resulting in a cumulative loss of N1.64 trillion over four years.
Senators voiced their apprehension that without a comprehensive investigation into past and ongoing rehabilitation projects, the pattern of awarding unproductive turnaround maintenance contracts will persist, enabling the misuse of public funds.
They stressed that it is essential to hold those responsible for the poor state of the refineries accountable.
Senator Adams Oshiomhole emphasized the need for proper oversight to ensure taxpayers receive value for their money, pointing out that the funds spent so far could have built entirely new refineries.
Senator Aliyu Wadada highlighted the presence of corruption in the system, while Senator Adamu Aliero alleged that economic saboteurs intentionally obstructed government efforts to make the refineries operational to benefit from fuel imports.
Senator Idiat Adebule questioned the rationale for continuing to invest in refinery rehabilitation when the refineries remain non-functional, and the Deputy Senate President underlined the economic challenges resulting from their inactivity.
Deputy Senate President Barau stressed the importance of a thorough investigation to unveil those responsible for sabotaging government efforts and misusing funds meant for refinery improvements.
He emphasized the necessity of taking decisive actions against those found guilty.
