An ad hoc committee was on Tuesday, set up by the Nigerian Senate to investigate all contracts awarded for the rehabilitation of the four moribund refineries in the country.
The committee was set up by Deputy Senate President, Jibrin Barau who presided over plenary following a motion moved by Senator Sunday Karimi representing Kogi West.
Senator Karimi moved the motion to investigate the turnaround maintenance projects of Nigerian refineries to prevent waste of public resources.
Nigeria has four refineries with two located in Port Harcourt, Rivers State, one in Warri, Delta State, and one in Kaduna State.
The Kogi Senator while presenting his motion, said “from 2010 till date, the Nigerian government had spent N11.35 trillion on contracts to rehabilitate the four refineries, but they are still unproductive.
“Between 2010 to date Nigeria is estimated to have spent N11.35 trillion (N11, 349, 583, 186, 313.40) excluding other cost in other currencies which include $592, 976, 050.00 dollar, 4, 877, 068.47 Euros and 3, 455, 656.93 Pounds, on renovation of refineries, yet they are unproductive.”
According to Senator Karimi, who is the chairman of the Senate Services Committee, despite the moribund state of the four refineries, their operating costs are estimated at N4.8 trillion.
He said; “Despite the moribund state of the four refineries, the operating costs of these refineries between 2010 and 2020 is estimated at N4.8 Trillion Naira. The refineries are estimated to make a cumulative loss of N1.64 Trillion, within four years. Concerned that the Nigerian Government has carried out rehabilitation projects in Port Harcourt Refinery Company (PHRC) over seven (7) years from 2013-2019 at an estimated cost of N12, 161, 237, 811.61 only. In addition, on the 18th of March 2021, a rehabilitation Contract was executed between NNPC/PHRC and Tenenimont SPA at a Lump Sum of $1, 397, 000, 000.00 only, about N75 billion Naira amidst global public criticism. Phase 1 of the Project is expected to be completed 28 Months after the contract, Phase 2 within 24 months, and Phase 3 within 44 months of execution. Despite this, the Port Harcourt. Perturbed that in a bid to revitalise the Warri Refinery, the Nigerian Government has injected huge Public funds into revamping Warri Refinery and Petrochemical Company limited to the tune of over N28, 219, 110, 067.10 between 2014 and 2019.”
