The House of Representatives Ad-hoc Committee on the state of refineries in Nigeria, has revealed that the rehabilitation of the nation’s refineries has been marred by duplication of projects and double payments, despite an expenditure of N11.349 trillion.
The committee, chaired by Rep. Ganiyu Johnson, presented its report during the plenary session in Abuja.
According to the committee’s findings, the state of the refineries from 2010 to 2020 was characterized by their non-functionality, unproductiveness, and wastefulness. The actual cost of rehabilitating the Nigerian refineries during that period could not be accurately determined.
Also, the committee identified significant omissions in the submissions made by the Nigerian National Petroleum Corporation (NNPC), including instances of project duplication and potential double payments.
It estimated that the total cost of rehabilitating the Nigerian refineries could amount to ₦11,349,583,186,313.40. Additional costs reported in foreign currencies were approximately US$592,976,050.00, £4,877,068.47, and £3,455,656.93.
In its recommendations, the committee urged the NNPC to leverage the recently passed Petroleum Industry Act 2021 to expedite the refinery rehabilitation program.
It also called upon the NNPC and the contractor, Tecnimont SPA of Italy, to ensure the completion of phase one of the rehabilitation works in refinery area five of the Old Port Harcourt refinery. The committee set a target of restoring the processing capacity to 54,000 barrels per day by March 202, representing 90% capacity utilization.
Additionally, it advised the NNPC and the contractor to focus on phase two of the rehabilitation works in refinery areas one and two of the New Port Harcourt Refinery, with a goal of achieving 135,000 barrels per day of processing capacity, equivalent to 90% capacity utilization.
The committee aimed for a combined processing capacity of 189,000 barrels per day from the Old Port Harcourt Refinery and the New Port Harcourt Refinery by December 2023, among other recommendations
