The Senate on Tuesday, set up an Ad-hoc Committee, to investigate all the contracts awarded for the rehabilitation of all State-owned refineries, which allegedly gulped N11.35 trillion in 13 years.
The Senate also mandated the Committee to interrogate the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian National Petroleum Corporation Limited NNPCL and the Bureau of Public Enterprises (BPE) on the best approach to commercialise state-owned refineries.
The Deputy President of the Senate, Barau Jibrin (APC, Kano) who presided over the plenary, appointed Senator Isah Jibrin Echocho as the Chairman of the Panel.
Other members are Chairmen of the Committees on Petroleum Resources (Downstream, Upstream and Gas), Finance, Appropriations, and Public Accounts and submit the report within four weeks.
The resolutions followed a motion by Senator Sunday Karimi (APC, Kogi) during plenary, who expressed concern that the non-functional refineries had continued to take large chunks of the country’s revenue in the last many years.
Nigeria’s four refineries in Kaduna, Warri and Port Harcourt had become moribund for years despite the series of repairs executed under various Turn Around Maintenance (TAM) contracts that had gulped huge amounts.
Karimi, in his motion, expressed concern that the state-owned refineries in Nigeria had been a serious drain pipe of public finance, depriving the citizens of the joy of being an oil-producing nation.
He noted that between 2010 and to date, Nigeria is estimated to have spent N11.35 trillion, excluding other costs in other currencies which include $592, 976, 050.00 dollars, 4, 877, 068.47 Euros and 3, 455, 656.93 Pounds, on the renovation of refineries, yet they are unproductive.
He said despite the moribund state of the four refineries, their operating costs between 2010 and 2020 are estimated at N4.8 trillion.
The refineries are estimated to make cumulative loss of N1.64 Trillion, within 4years, he added.
He stated that if a thorough investigation of the past and current rehabilitation projects was not undertaken by the Senate, the circle of awarding unproductive turnaround maintenance contracts may not abate, thereby retaining the status quo where rehabilitation contracts have become conduit pipes for siphoning public funds.
In their various contributions, Senators said that the country could not continue to spend money on an unproductive venture and urged the relevant authorities to ensure that those responsible for the state of the refineries are sanctioned.
Adams Oshiomhole (APC, Edo), said that the Senate must ensure proper oversight functions to make sure that Nigerians enjoy value for their tax, saying, “The amount so far spent on the refineries can build brand new ones. Senators must take the issues with all seriousness it deserves.”
Aliyu Wadada (SDP, Nasarawa) said the high level of corruption while Adamu Aliero (PDP, Kebbi) alleged that economic saboteurs deliberately frustrated the government’s effort to make the refineries to work so they continue to benefit from fuel importation.
Idiat Adebule (SPC, Lagos) wondered why the nation keeps putting money into the rehabilitation of refineries annually when they remain non-functional.
The Deputy President of the Senate said that if the refineries had been working, the country would not be experiencing the current economic hardship.
“So, it is therefore very important that a thorough investigation should be done to make sure that everything that we need to know is brought open to us. Who are those who are sabotaging the efforts of government?
“Anybody who has a hand, sabotaging the efforts of the government to bring these refineries into operation and those who have taken money that is meant to turn around these refineries must be brought to book. We must know them and decisive actions must be taken,” he said.
