Senate probes $1.5bn Port Harcourt refinery rehabilitation funding

Senate probes $1.5bn Port Harcourt refinery rehabilitation funding

The Senate has expressed worry over the 1.5 billion dollars granted in 2021 for turnaround maintenance at the Port Harcourt Refinery, which has yielded little or no results.

Sen. Opeyemi Bamidele, Chairman of the Senate Ad Hoc Committee to Investigate Alleged Economic Sabotage in the Nigerian Petroleum Industry, expressed his worry during an interactive session with stakeholders on Wednesday in Abuja.

Bamidele, also the Senate Leader, said punishing public firms poorly was unjust and unethical while private businesses thrived and prospered.

He noted that the Federal Executive Council (FEC) approved the Ministry of Petroleum Resources’ plan to rebuild and turn around the Port Harcourt Refinery with 1.5 billion dollars.

Bamidele voiced alarm about the malfunctioning state of government-owned refineries, despite billions of dollars spent on turnaround maintenance.

“The federation is facing a genuinely difficult phase. Our fatherland’s recent past has seen erratic and troublesome distribution and supply of refined petroleum products.

“The huge lines at gas stations are visible evidence of this difficulty.

“A situation whereby we now depend almost entirely on the importation of these products even when we daily supply the global oil market with about two percent of its crude oil requirements is worrisome,” stated the president.

He also expressed severe worry over importing dangerous petroleum products and dumping substandard fuel in the country.

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Bamidele said that since 1999, the federal government had “invested billions of dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt, and Warri.” However, the refineries are not operating.

“In 2021, specifically, the Federal Executive Council budgeted 1.5 billion dollars for turnaround maintenance at the Port Harcourt Refinery. However, this investment has not produced considerable profits.

“For us in the Senate, we believe, it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving.”

He stated that the National Assembly was prepared to conduct the investigation hearing with utmost respect and responsibility.

Mr Mele Kyari, Group CEO of Nigerian National Petroleum Company Limited (NNPCL), denied allegations of sabotage against domestic refineries.

“Everyone here is aware of what is going in the media. A personal attack on my person and the institution. And we all understand how this works.

“They are deliberate and calculated. As a result, the NNPCL and our government are doing all possible to damage our country’s economy.

“It is far from that. The company has grown, and we are proud to state this. Kyari stated that the company had been losing money for 43 years before becoming profitable today.

Furthermore, Mr Heineken Lokpobiri, Minister of State for Petroleum Resources, stated that the oil industry was plagued by disinformation.

“The Senate should do Nigerians a favour by broadcasting the hearings of this committee live.

“This will do much justice not only to the Senate, but also to the executive branch and important sector leaders.

According to him, “Because of the fundamental nature of this investigation, which concerns alleged economic sabotage through the importation of substandard products into the country, we urge the Senate to ensure we do a live broadcast.”

He stated that the government was dedicated to protecting local industries and other oil-related interests.

According to the minister, “We are committed to supporting Dangote Refinery and modular refineries, and we have been resolving whatever issues they brought to our attention.”

At the investigation hearing, Mr Aliyu Suleiman, Chief Strategy Officer of Dangote Industry Ltd., stated that the refinery began full production in March.

“Since then, we’ve processed around 50 million barrels of crude. We have produced around five million tonnes of petroleum products, which have been marketed throughout the country,” he explained.

Mr Wale Edun, Minister of Finance and Coordinating Minister of the Economy, stated that increased crude oil production would help to stabilise the country’s foreign exchange market.

Senate probes $1.5bn Port Harcourt refinery rehabilitation funding