$18B Down the Drain? House Sets to Tackle Nigeria’s Refinery Mystery

The lingering questions surrounding the operational status and future of Nigeria’s four state-owned refineries have once again taken centre stage in the nation’s energy discourse.

In response to growing uncertainty, the House of Representatives Committee on Petroleum Resources (Midstream) has announced that it will convene on Thursday.

This is supposedly to deliberate on the current condition of the refineries located in Port Harcourt (two), Warri, and Kaduna.

The refineries, which have long been symbolic of Nigeria’s potential to refine its own crude oil domestically, have been riddled with controversy over their performance and viability.

Although there were initial celebrations earlier this year following announcements by the Nigerian National Petroleum Company Limited (NNPCL), that refining activities had resumed at the Port Harcourt refinery, those hopes were recently dampened.

NNPCL was led at the time by the former Group Chief Executive Officer Mele Kyari.

Speaking in a rather sobering tone, Alhaji Aliko Dangote, President of the Dangote Group, raised fresh concerns by suggesting that the government-owned refineries might never return to functional status.

This revelation has further compounded public anxiety and raised tough questions about past investments in turnaround maintenance.

These concerns prompted swift action from the Chairman of the House Committee, Hon. Henry Okojie.

Okojie revealed that the Committee is preparing to launch a comprehensive investigation into the status of the refineries.

His comments followed remarks made by the current NNPCL GCEO, Bayo Ojulari, who hinted that the refineries could potentially be sold off.

He cited challenges linked to technological obsolescence and the competitiveness of the global refining sector.

Ojulari had expressed unease about the outdated infrastructure of the refineries, implying that they may not be equipped to meet the evolving demands of modern petroleum refining.

His statement stirred public debate and drew reactions from political and civil society quarters.

These included a cautionary note from the African Democratic Congress against any hasty decision to sell national assets.

Speaking with PUNCH Online, Okojie explained that Thursday’s meeting would serve as a forum for committee members to openly evaluate the situation and explore possible solutions, keeping Nigeria’s interests at the heart of their deliberations.

He stated, “Like I stated recently, this Committee was set up by the leadership of the House of Representatives, symbolized by the Speaker, Tajudeen Abbas, GCON, to serve the interest of the Nigerian people.

“We are out to make sure that whatever decision we take serves the interest of our people, on whose behest we are at the National Assembly today.”

He further disclosed that the Committee intends to critically examine reports indicating that over $18 billion has been spent on turnaround maintenance over the years.

Despite such staggering expenditure, the refineries have failed to deliver consistent results.

“The Committee will meet this week, hopefully by Thursday, to consider all issues before us concerning the state of the refineries.

“There are reports that over $18 billion has been spent on turnaround maintenance of the refineries.

“If this is the case, why are they not working?

“If selling them is a better option, we will know.

“But until we investigate the situation on the ground, we cannot make a decision.”

Okojie, who is a member of the ruling All Progressives Congress (APC), also cautioned against politicizing the matter.

He stated that no final decision has been made by the Federal Government regarding a possible sale of the refineries.

“It is not time for election yet, and I don’t think it is helpful to politicize this matter.

“The President Bola Tinubu-led government has not said it is selling off the refineries.

“The NNPCL’s GCEO merely said sale might be an option,” he clarified.

Reaffirming the Committee’s commitment to national interest, Okojie assured Nigerians that any resolution reached would be done transparently.

He said the resolution would also be done in alignment with the broader policy goals of the current administration.

“Our Committee has work to do and we will do it in the best interest of our beloved country,” he noted.

He further praised President Tinubu’s reform agenda, stating, “Mr President has taken significant steps for the betterment of Nigerians since his inauguration in 2023.

“We saw what he did with the tax reform initiatives.

“In the same vein, the Commander-in-Chief will take a broader look at the state of the refineries and make the right call.”

Okojie concluded by emphasizing the legislature’s role in supporting the administration’s Renewed Hope Agenda.

He stressed that Parliament remains a key stakeholder in ensuring Nigeria’s energy security and economic stability.

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook