Senate probes $1.5 billion spent on Port Harcourt refinery rehabilitation

The Senate has raised concerns over the $1.5 billion approved by the Federal Government for the maintenance of the Port Harcourt refinery without commensurate results.

Chairman of the Senate Ad Hoc Committee to Investigate Alleged Economic Sabotage in Nigeria’s Petroleum Industry, Opeyemi Bamidele, raised the concerns during an interactive session with stakeholders on Wednesday in Abuja.

Bamidele, who is also Senate Leader, said it was wrong to treat public companies badly while private businesses thrived.

He recalled that the administration of former President Muhammadu Buhari in 2021 approved a $1.5 billion rehabilitation and restoration plan for the refinery.

The lawmaker expressed concern about the state of the government-owned oil refineries which are not functioning despite spending billions of dollars on routine maintenance.

He said: “The federation is going through a very challenging time. The distribution and supply of refined petroleum products has been irregular and problematic in the recent history of our country.

“Long queues at gas stations are evidence of this challenge.

“The situation where we are now relying almost entirely on imports of these products, even as we supply about two percent of the world’s daily crude oil needs, is truly worrying.”

He also condemned the import of hazardous petroleum products and the dumping of substandard diesel into the country.

READ ALSO: Port Harcourt refinery to deliver petrol in two weeks — Kyari

“The federal government has invested billions of dollars since 1999 to maintain and revitalize state-owned oil refineries in Kaduna, Port Harcourt and Warri. But the refineries are not functioning.

“Specifically in 2021, the Federal Executive Council approved $1.5 billion for the maintenance of the Port Harcourt refinery. However, this investment has not yielded significant returns.

“For us in the Senate, we believe it is unfair and unpatriotic to treat government-owned enterprises or public companies as orphans while private enterprises thrive,” Bamidele added.

He said the National Assembly was ready to carry out the investigation with all respect and responsibility.

However, the Group Chief Executive of the Nigerian National Petroleum Company Limited (NNPCL), Melee Kyari, has denied claims that the company sabotaged domestic oil refineries.

He said: “We all here see what is happening in the media. There are personal attacks directed at me personally, at the institution. And we all know how this happens.

“They did it deliberately, they were calculating. So, it creates an impression that NNPCL and our leadership are doing everything they can to create economic sabotage in our country.

“Far from it. The company has grown. We are proud to say this. From a loss-making company for 43 years to a profitable company today.”

Additionally, Minister of State for Petroleum Resources, Mr. Heineken Lokpobiri, said the oil sector is plagued by a lot of misinformation.

“This Senate should do the Nigerian people a favor by broadcasting the proceedings of this committee live.

“This will do great justice not only to the Senate but also to us in the Executive and key leaders in the sector.

“Because of the fundamental nature of this investigation which relates to alleged economic sabotage through the importation of substandard products into this country, we urge the Senate to ensure we broadcast it live,” the minister said.

Senate to probe $1.5 billion spent on Port Harcourt Refinery rehabilitation first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.