By Nathaniel Zacchaeus and Linus Aleke, Abuja
The Senate yesterday constituted an ad-hoc committee to investigate the Nigerian National Petroleum Corporation Limited over the N11.35trn it spent on the nation’s four moribund refineries in the last 13 years.
The Deputy President of the Senate, Jibrin Barau, announced the composition of the panel while presiding over the Plenary.
The decision was taken after the red chamber deliberated extensively on a motion by Senator Sunday Karimi who is representing Kogi West.
Karimi’s motion is on the Urgent Need to investigate the various Turn Around Maintenance (TAM) projects of Nigerian refineries to uncover waste and forestall further waste of scarce public resources.
The Red Chamber asked the ad-hoc committee to investigate all contracts awarded for the rehabilitation of all state-owned refineries
It also asked the panel to ascertain progress on the ongoing works in all refineries to forestall waste and corruption.
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It is also expected to interrogate the Federal Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian National Petroleum Corporation Limited, and the Bureau of Public Enterprises, on the best approach to commercialising and or ensuring profitability of the state-owned refineries
It also mandated the panel to invite the NNPCL, NUPRC, and the Nigerian Liquefied Natural Gas to explain the nation’s preparation for Green Energy sources in line with the Paris Agreement on Climate Change
The Ad-hoc Committee was asked to conduct the investigations in conjunction with the Senate Committee on Petroleum Resources (Downstream).
The Deputy Senate President said those who had taken money meant for the Turn Around Maintenance should be brought to book.
He named Senator Isah Jibrin as the Chairman of the panel to work with chairmen of the committees on Petroleum Resources (Downstream); Upstream; Gas; Finance; Appropriation, and Public Accounts, to submit the report within four weeks.
Karimi while moving his motion said state-owned refineries in Nigeria have been a serious drain pipe of public finance, depriving the citizens of the joy of being an oil-producing nation.
He said, “Between 2010 to date, Nigeria is estimated to have spent N11.35trn (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.
“The Federal Government of Nigeria has spent over N6trn between 2010 and 2023 on fuel subsidy due to Nigeria’s Low refining capacity and has spent almost twice the amount on rehabilitations (Turn Around Maintenance Projects) its refineries in Port Harcourt, Kaduna, and Warri between 2010 and 2022.
“Despite the moribund state of the four refineries, the operating costs of the refineries between 2010 and 2020 are estimated at N4.8trn. The refineries are estimated to make a cumulative loss of N1.64 Trillion, within four years.
“The Federal Government of Nigeria has carried out rehabilitation projects in Port Harcourt Refinery Company (PHRC) over seven 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 only (about N575bn) amid global public criticism.
“Phase 1 of the Project is expected to be completed in 28 Months after the contract, Phase 2 within 24 months, and Phase 3 within 44 months of execution. Despite this, the Port Harcourt
“Refinery remains a money pit. Going by projections and representations from NNPCL the renovation works ought to be completed and operations of the Refinery commenced by June 2023.
“In a bid to revitalize the Warri Refinery, the Federal Government has injected huge Public funds into revamping Warri Refinery & Petrochemical Company Limited to the tune of over N28,219,110,067.10 between 2014 and 2019.
“That particularly, around 24 June 2022, the Federal Executive Council awarded Maintenance Services for Quick Fix Repairs of Warri Refinery to Daewoo Engineering and Construction Limited at $497, 328, 500.00, yet at the moment the Warri Refinery is inactive.
“This is different from the 2017 contract award to Saipem Contracting Nigeria Limited for Tech Plant Survey of the Warri and Kaduna Refineries at 2, 025, 000.32 Euros.
“The Kaduna Refinery and Petrochemical Company (KRPC) has over the past 10 years gulped N2, 266, 248, 434.00 in the name of rehabilitation, yet the Refinery remains unproductive.
“The Nigerian National Petroleum Company Limited (NNPCL) approved a $741m renovation deal with Daewoo Engineering and Construction Limited to renovate Kaduna Refinery in February 2023 and it is intended to restore the refinery to production of 110,000 barrels of petrol per day (at least 60percent capacity) by early 2024.
“If a thorough investigation of the past and current rehabilitation project is not undertaken by the Senate, the circle of awarding unproductive turn around maintenance contracts may not abate, thereby retaining the status quo where rehabilitation contracts have become conduit pipes for siphoning public funds, whilst Nigerian citizens continue groaning over the high cost of petroleum products due to the moribund situation of the state-owned refineries, even as the World gravitates towards Green/Clean Energy Sources.”
In their various contributions, senators condemned those who ripped the nation of its scarce resources and vowed to bring them to book.
*52 Reps, CSOs call for Kyari’s sack over poor handling of subsidy removal
Meanwhile, no fewer than 52 members of the House of Representatives, led by Philip Agbese and Peter Akpanke, as well as consortium of Civil Society Organisations (CSOs) under the leadership of Yusuf Suleiman and Yetunde Akinfenwa yesterday called for the immediate sacking of the Group Chief Executive Officer (GCEO) of NNPCL, Mr Mele Kyari, over the poor handling of removal of fuel subsidy and its socio-economic challenges on Nigerians.
The consortium of CSOs and the lawmakers in a press conference in Abuja said Kyari should be removed as the situation was getting out of hand and the economy also gasping for breath.
Akpanke is the Deputy Chairman of the House Committee on FCT Area Councils, while Agbese is the Deputy Chairman of the House Committee on Media and Publicity.
According to the coalition, “We, the honourable members of the House of Representatives have gathered here today to address a matter of utmost significance that affects every Nigerian. As representatives of the Nigerian people, we must speak up when we witness the suffering and distress caused by the actions or inactions of public officials.
“Today, we call for the removal of the Group Chief Executive Officer (GCEO), of the Nigeria National Petroleum Corporation Limited (NNPCL), based on the recent hike in fuel prices and the resulting scarcity across the nation. Fuel is the lifeblood of our economy, and any disruption in its availability or exorbitant price increases can have severe consequences for the ordinary citizens who rely on it for their daily transportation and livelihoods.”
The aggrieved lawmakers and CSOs said the recent fuel scarcity and price hikes have caused significant hardship for the Nigerian people, adding that it has disrupted businesses, hindered agricultural activities, and burdened families with additional expenses.
The GCEO of NNPCL, as the head of this crucial National institution, they said, has failed in his duty to ensure a stable supply of fuel at affordable prices.
They further pointed out that the government has also failed to keep to its promises to Nigerians.
According to them, “It is a matter of great concern that despite the promises made by the government to address this issue, the problems persist, causing untold suffering to our citizens.
“It has also come to our knowledge that there is a grand plot to sabotage the good world of President Tinubu through this persistent scarcity or how else can you describe the nonchalance of the Kyari towards this scarcity.”
The lawmakers made it clear that they had not gathered to criticise Kyari but to demand immediate action.
Noting that the Nigerian people cannot afford to continue enduring the consequences of this fuel crisis, the group called on President Bola Ahmed Tinubu to take swift and decisive action by removing the current GCEO of NNPCL and appointing a competent replacement who can effectively address the challenges in the petroleum sector.
“The GCEO of NNPCL holds a position of immense responsibility, and with that responsibility comes accountability. We cannot tolerate a situation where the masses suffer, while those in power fail to take the necessary steps to alleviate their plight. We, as representatives of the Nigerian people, will not stand idly by while this crisis deepens,” they further said.
The group also called for a comprehensive investigation into the root causes of these recurring fuel problems, adding that they need to identify the systemic failures and hold accountable all those responsible for the mismanagement that has contributed to this crisis.
This is as, the lawmakers and CSOs called on the Tinubu-led administration to find alternative energy sources to fossil fuel as Nigerians are now at the mercy of international oil price fluctuations.
“Moreover, we urge the government and relevant regulatory bodies to take steps to diversify our energy sources. Overdependence on fossil fuels leaves us vulnerable to price fluctuations, which in turn negatively impact the economy and the livelihoods of our people.
“It is high time we explore and invest in alternative energy sources to mitigate the impact of such crises in the future,” they said.
The group said that their duty is to the Nigerian people, and they will continue to demand accountability from those entrusted with the crucial task of managing our nation’s petroleum resources.
