Senate Probes N11.35trn Turnaround Maintenance on Refineries
Nigerian Senate has commenced probe in the N11.35trn Turnaround Maintenance on state owned Refineries.
The Senate has therefore, asked its ad- hoc committee to investigate all contracts awarded for rehabilitation of all state owned refineries from 2010 to 2023.
The probe followed the adoption of a motion by Sen. Sunday Karimi, at plenary on Tuesday, on “Urgent need to investigate various turnaround maintenance projects of Nigerian refineries, to uncover waste and forestall further waste of scarce public resources”.
Presenting the motion, Karimi expressed worry that state owned refineries in Nigeria had been a serious drain pipe of public finance, depriving citizens of joy of being an oil producing nation.
He said from 2010 to date, Nigeria was estimated to have spent N11.35 trillion on renovation of refineries, yet unproductive, revealing that other cost in other currencies had also been spent.
The Senator noted that the federal government had spent over N6 trillion between 2010 and 2020 on fuel subsidy due to Nigeria’s low refining capacity and had spent almost twice the amount on rehabilitating and turn around maintenance projects on its refineries in Port Harcourt, Kaduna and Warri between 2010 and 2022.
Senator Karimi further observed that in spite of the moribund condition of the four refineries, the operating costs of the refineries between 2010 and 2020 was N4.8 trillion.
“The refineries are estimated to make cumulative loss of N1.64 trillion within four years.
It should be recalled that the federal government of Nigeria has carried out rehabilitation projects in Port Harcourt Refinery Company, PHRC, over a period of seven years from 2013 to 2019.
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