The House of Representatives yesterday said it will investigate the sum of $396.33 million allegedly spent in four years on Turn Around Maintenance of the nation’s three refineries in Port Harcourt, Warri and Kaduna.
This followed a unanimous adoption of a motion moved by Ifeanyi Momah (APGA-Anambra) during plenary presided over by the deputy speaker of the House, Mr Idris Wase.
The motion was titled, ‘Call for Investigation of the 396.33 million dollars allegedly spent in Four Years on Turn Around Maintenance of the Nation’s Three Refineries.’
Moving the motion, Momah said that Nigeria currently has three major refineries situated with installed capacity to refine 445,000 barrels of oil, enough for domestic consumption and export.
The lawmaker said the objective of domestic consumption and export had not been realised owing to a combination of factors.
He said the factors included corruption and inefficiency in the running of the refineries with regular “Turn Around Maintenances” mismanaged over the years.
“The House also recalled a report in a national daily of October 18, 2019 by the Nigeria National Resource Charter (NNRC) on ‘Reducing Losses from Refineries Operations.’
The report reviewed the operations of the Nigerian National Petroleum Corporation (NNPC) from a cost perspective of efficiency and value for money.
“It observed the assertion by the NNRC in the report that the NNPC spent a whopping $396.33 million between 2013 and 2017 to carry out repair works under the “Turn Around Maintenance” (TAM) scheme on its three decrepit refineries at Port-Harcourt, Warri and Kaduna.
“It also observed the claim that the NNPC also spent N276.872 billion on operating expenses of the refineries between 2015 and 2018, as well as $36 billion on importation of petroleum products between 2013 and 2017.”
The legislators said that the three refineries contributed less than 10 per cent annually to Nigeria’s Gross Domestic Product (GDP).
It also noted that the refineries were among the league of refineries with the highest operating costs worldwide and their consolidated capacity utilisation dropped to 6.1 per cent at the end of Sept. 2017.
The House expressed concern that the goal of establishing local refining facilities to contribute to national development continued to elude the country’s oil and gas industry.
“Going by the reckoning of the NNRC, the $36 billion the country spent on importation of petroleum products in the last four years could have built four brand new refineries of similar capacity with the same 650,000 barrels per day.”
The lawmakers also expressed concern on the maintenance costs of the refineries which had remained comatose and left the country dependent on importation of refined petroleum products for its domestic consumption.
The House called on the Federal Government to consider divesting a certain percentage of its shareholding in the refineries to competent investors under transparent and fair bidding process.
It also mandated the Committee on Petroleum Resources (Downstream) to conduct an investigative hearing on the processes of the TAM at the three refineries by the NNPC between 2013 to date.
The committee is expected to report back in eight weeks for further legislative action.
COVID-19: Tracy, Okorie, Others Brainstorm On ‘Leadership For Success In Times Of Crisis’
Army To Use Dogs To Sniff Out Coronavirus Infections
Coronavirus: India Third Worst-Hit With Nearly 700,000 Cases
FG To Resume Third Mainland Bridge Repairs
Accountant General’s Office Denies Paying N173bn Without Proper Records
COVID 19: Ohaneze Mobilize 200 Religious Groups To Pray For Gov Umahi
How Minister, NSITF Rift Led To Suspension Of MD
EDITORIAL10 hours ago
COVID-19 And Planned Reopening Of Schools
OPINION5 hours ago
Who Is Afraid Of el-Rufai?
BUSINESS19 hours ago
CBN’s Adjustment Of Naira May Lead To Higher Costs For Imported Goods – NECA
NEWS16 hours ago
FRSC Redeploys Senior Officers
BUSINESS9 hours ago
CBN Gives 4 New Banks December Deadline To Expand Operations
NEWS23 hours ago
Kano Govt Approves N2.36bn For Zawaciki Inland Port Project
NEWS20 hours ago
Group Petitions Appeal Court President Over Rivers APC Crisis
NEWS10 hours ago
Wadume: Soldiers Must Face Regular Court, Says Falana