Reps kick against Nigerian govt’s plan to spend $1.8 billion on refineries

House of Reps
House of Reps

The House of Representatives has criticised a bid by the Nigerian National Petroleum Corporation, NNPC to spend $1.8 billion on the maintenance of the refineries across the country.

In a motion by Ibrahim Isiaka (Ogun – APC) at the plenary on Tuesday, he queried the viability of further expenditure on the country’s four refineries and the daily allocation of 445,000 barrels of crude to the facilities as they perform poorly.

“The House is cognisant that sums of $308 million, $57 million, $200 million, and lately, more than N264 billon were spent on refineries, yet it was reported that the NNPC is seeking $1.8 billion to carry out another TAM (Turn Around Maintenance) to make the refineries attractive to investors.”

He added that the federal government’s efforts to bring in private investors to build refineries had not yielded the desired result.

“Despite major paradigm shift and consideration of different reliefs, including reduction of licensing fee for new refineries from $1 million to $50,000 to make domestic refining attractive and reduce huge capital flight to fuel importation, only Aliko Dangote has put the licence to use.

“No efforts have been made to revoke the licences given to individuals and corporate organisations to build refineries, which have yet to be utilised”, he said.

He noted that $20 billion had already been spent on TAM but without appreciable improvement in performance to justify the fresh expenditure.

He added that Nigeria’s refineries had the worst performance record in Africa at, ”11 per cent, compared to the 81 per cent scored by Egypt and 85 per cent recorded by South Africa.”

The House unanimously also resolved to investigate and determine the current status of the four refineries.

Nigeria, Africa’s largest oil producer, imports most of its petroleum products for domestic use.

The four refineries located in Port Harcourt, Warri and Kaduna have a combined capacity to refine 445,000 barrels of crude per day.


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  • Holy truth

    Another scheme to steal money by NNPC, don’t dis pple have conscience & d fear of GOD?

    • Prosperous Nigeria

      Dangote’ s Refinery is starting opearations next year. Why can’t FG use the money to buy into the Refinery?

  • Keen Observer

    @holy_truth:disqus E-X-A-C-T-L-Y Another scheming is underway to steal & stockpile oil money again for electoral malpractices. As was in the days of Diezani, GEJ & INEC.

  • Gary

    They plan to spend more money on TAM for the refineries they want to sell. Classic pattern of corruption in Nigeria: use public funds to refurbish underperforming assets then sell them to cronies or fronts of government officials for a pittance. Then call it privatization.
    Presto, the national patrimony is transferred into private hands and to perform for its new owner/s. This his how the assets of Nigeria Airways, National Shipping Lines, NEPA/PHCN and the Steel Rolling Mills were all transferred into private hands.

    It is a win-win for all involved: those in government make money for themselves and cronies, they use the kickbacks from the asset sales as political patronage and to build a war chest for election campaign.
    So a handful of folks in government and the well-connected get very rich, become tagged as “business moguls” tor being gifted with pub assets while the Nigerian people and the country at large get screwed again.

    P.S. The Niger Delta people, PANDEF and their elected representatives at the NASS and state Governors must take a closer look, across party lines, at the current shenanigans over the refineries and the running of the NNPC under Barawo Baru. The refineries, poorly managed as they are, represent the only fixed sssets from the oil wealth of the region and must not be transferred to entities outside of that region.
    It is time for the BRACE states to form a consortium to jointly bid for the takeover over the Warri and Port Harcourt refineries. The region has the human manpower to manage the refineries with foreign technical partners where necessary.
    Aliko Dangote’s refinery in Lagos will soon come on stream. The Kaduna refinery is there for regional “investors” there to pursue.