T he Senate has expressed deep concerns over the $1.5 billion allocated in 2021 for the turn-around maintenance of the Port Harcourt Refinery, citing a lack of significant results despite the substantial investment. Opeyemi Bamidele, chairperson of the Senate Ad Hoc Committee investigating alleged economic sabotage in Nigeria's petroleum industry, voiced these concerns during an interactive session with stakeholders on Wednesday.
Bamidele, who also serves as the Senate leader, criticized the ongoing neglect of public enterprises while private businesses continue to thrive. He highlighted that the Federal Executive Council had approved the $1.5 billion plan by the Ministry of Petroleum Resources to rehabilitate the Port Harcourt Refinery, yet the refinery remains largely dysfunctional.
“The federation is facing severe challenges. The irregular distribution and supply of refined petroleum products are a testament to this crisis,” Bamidele stated. He pointed to the long queues at filling stations and the country’s heavy reliance on imported refined products despite being a major oil exporter.
The Senate leader emphasized that the situation is worsened by the importation of substandard and hazardous petroleum products. He lamented that billions of dollars have been spent on maintaining and upgrading government-owned refineries in Kaduna, Port Harcourt, and Warri, but these facilities continue to underperform.
Mele Kyari, Group CEO of the Nigerian National Petroleum Company Limited (NNPCL), countered allegations of sabotage, asserting that the NNPCL has transformed from a loss-making entity into a profitable organization. He refuted claims that the company has undermined domestic refineries.
In support of transparency, Heineken Lokpobiri, Minister of State for Petroleum Resources, proposed live broadcasting the Senate's investigative hearings to ensure public accountability and enhance trust in the process. He affirmed the government’s commitment to supporting local refineries, including the Dangote Refinery and modular refineries, to address the sector's challenges.
Aliyu Suleiman, Chief Strategy Officer at Dangote Industries Ltd., reported that their refinery, which began full production in March, has processed approximately 50 million barrels of crude oil and produced around five million tons of petroleum products distributed across the country.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, noted that increasing crude oil production could stabilize Nigeria's foreign exchange market, underscoring the broader economic implications of the refinery issues.
The Senate’s investigation aims to address the discrepancies in the management and funding of public refineries, holding accountable those responsible for the underperformance and ensuring that future investments yield tangible benefits for Nigeria’s energy sector.
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