Senate to investigate N11.3tr contracts for rehabilitation of Nigeria’s refineries

The Senate on Tuesday resolved to investigate all contracts awarded for the rehabilitation of the country’s four refineries in the last 13 years.

This followed the adoption of a motion moved by the Chairman of the Senate Services Committee, Sunday Karimi, at the plenary.

The country’s four refineries are Port Harcourt l and ll in Rivers State, Warri, Delta State, and in Kaduna.

Karimi, who led the debate on the motion, said the Federal Government had spent N11.35 trillion on contracts to rehabilitate the refineries since 2010 without results.

He pegged the operating costs of the refineries at N4.8 trillion despite the inactivity.

The lawmaker said: “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, €4, 877, 068.47 and £3, 455, 656.93 on renovation of refineries, yet they are unproductive.

“Despite the moribund state of the four refineries, the operating costs of these refineries between 2010 and 2020 were estimated at N4.8 trillion. The refineries are estimated to make a cumulative loss of N1.64 trillion within four years.

READ ALSO: Reps to conduct investigative hearing, audit of funds spent on rehabilitation of Nigeria’s refineries

“Concerned that the Federal Government of Nigeria has carried out rehabilitation projects in Port Harcourt Refinery Company (PHRC) over a period of seven years from 2013-2019 at an estimated cost of N12, 161, 237, 811.61 only, in addition, on the 18th 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.”

The Deputy Senate President, Barau Jibirin, who presided over the plenary, thereafter, set up an ad-hoc committee to investigate contracts awarded for the rehabilitation of the refineries.

The committee is headed by the Senator representing Kogi East, Isah Jibrin, while the chairmen of the Senate committees on petroleum resources downstream; upstream; gas; finance; appropriation, and public accounts are members.

Other members of the committee are Senators Yahaya Abdullahi, Adamu Aliero, Ifeanyi Ubah, and Karimi.

The committee is expected to submit its findings to the Senate within four weeks.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now