Nigeria spent N11.3tn on maintenance of refineries  – Reps investigation

Nigeria spent N11.3tn on maintenance of refineries  – Reps investigation

The Federal Government spent a total of N11.35tn on turnaround maintenance of the nation’s refineries between 2010 and 2020, an investigative panel has revealed.

The amount is contained in the report/recommendations of the Ad-hoc Committee of the House of Representatives, which investigated the ‘state of refineries in the country, and the need to ascertain the actual daily consumption of Premium Motor Spirit (petrol) in Nigeria.

The committee was chaired by Ganiyu Johnson.

This was disclosed during the part consideration on Tuesday of the report of the investigative report.

The full consideration of the report was however deferred to Thursday, to enable the ad-hoc committee to clearly list the recommendations that should be a template to deal with the specific issues, Deputy Speaker Idris Wase said.

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The ad-hoc committee also underscored the need to conduct a forensic audit on all the rehabilitation projects in the refineries.

In its findings, the committee observed that the “three refineries became unproductive from year 2010, making the following range of losses: Port Harcourt refinery Company (PHRC) at 7.6% losses to the tune of N132bn; WRPC at 6% losses to the tune of N111bn from 2014; and KRPC at 10% losses to the tune of N122bn from 2014.

“That from year 2010 to 2019, the nation’s refineries were performing sub-optimally with an annual combined capacity of less than 30% therefore in year 2019 the NNPC obtained an Executive approval and shutdown the refineries for comprehensive rehabilitation to restore the plants to a maximum of 90% nameplate company utilization.

“That the total losses from the non-functional refineries since year 2010 is put at N366,524,140,000 only.”

It also noted, “That the Port Harcourt Refinery Company (PHRC) carried out rehabilitation projects over a period of seven years ranging from 2013 to 2019 valued at about N12,161,237,811.61 only.

“That the Warri Refinery and Petrochemical Company (WRPC) carried out rehabilitation projects over a period of six (6) years ranging from 2014 to 2019 valued at about N28,219,110,067.10.

“That Kaduna Refinery and Petrochemical Company (KRPC) also carried out rehabilitation works over the period under review valued at about N2,266,248,434.69.

“That the total cost of rehabilitation for the three refineries based on the submissions of the NNPC from year 2013 to 2019 is put at N42,646,596,313.40 only.

“That other project costs were reported in foreign currencies at KRPC such as USD43,672,537.56; £2,852,068.15 and GBP3,455,656.93.”

Nigeria spent N11.3tn on maintenance of refineries  – Reps investigation