Senate Queries $1.5bn Spent On Port Harcourt Refinery

Amid pervasive allegations of sabotage in the petroleum industry, the Senate has raised questions over the $1.5 billion approved in 2021 for the turn-around maintenance of the Port Harcourt Refinery with little or no result.

Consequently, the upper chamber lamented that it was unfair and wrong to treat government businesses or public companies as an orphan while private businesses thrive.

Senate leader and chairman, Senate Ad-hoc Committee to Investigate the Alleged Economic Sabotage in the Nigerian Petroleum Industry, Senator Opeyemi Bamidele, raised the questions at a session with stakeholders in the industry at the National Assembly Complex, Abuja on Wednesday.

The session was attended by Minister of Finance and Coordinating Minister of the Economy Wale Edun; group managing director, Nigerian National Petroleum Corporation Limited (NNPCL), Malam Mele Kyari; chief executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Gbenga Komolafe and chief executive officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Mr Farouk Ahmed, among others.

LEADERSHIP recalls that the Federal Executive Council had in 2021 approved the plan by the Ministry of Petroleum Resources to rehabilitate and turn around the Port Harcourt Refinery with $1.5 billion under the administration of former President Muhammadu Buhari.

Despite the huge investment, the government-owned refinery is yet to function effectively, a situation that compelled the country to depend almost entirely on the importation of petroleum products.

At the session with stakeholders on Wednesday, Bamidele expressed grave concern about the failure of the government-owned refineries despite billions of dollars invested to revive the installation.

Bamidele observed that the Nigerian federation is undergoing a truly challenging period, pointing out that the distribution and supply of refined petroleum products “has been irregular and problematic in the recent history of our fatherland.”

“The long queues at filling stations are obviously a testament to this challenge. A situation, whereby we now depend almost entirely on the importation of these products, even when we daily supply the global oil market no fewer than two per cent of its crude oil requirements, is, to say the least, highly worrisome.

“We also have at hand a grievous issue of national concern that directly borders on the importation of hazardous petroleum products and dumping of substandard diesel into the country,” he said.

To permanently nip these challenges in the bud, Bamidele disclosed the plan of the Senate to jointly conduct an investigation along with the House of Representatives into diverse allegations of economic sabotage in the petroleum industry.

Bamidele, equally, noted that there would be no room for grandstanding during the investigative hearing, promising that the committee would carry out its mandate fairly and impartially.

While insisting that nobody will be untouchable, Bamidele said the task of ridding the petroleum industry of malfeasance “is urgent and must be carried out in the spirit of nationalism and patriotism. We are ready to carry it out with all senses of honour and responsibility.

“We are also taking it seriously to address fundamental issues that pose grave threats to our economic prosperity, fiscal stability and public health as a federation. In line with our mandate, we will definitely unravel factors and forces aiding sabotage in our petroleum industry.”

According to him, the exercise will lead to the entrenching of global best practices in the industry, open it up for more investments, especially in the midstream and downstream sectors and end vicious regimes of subterfuge in the petroleum industry.

Also, at the session, Kyari claimed that NNPC “is loyal and faithful to the country,” saying its management vowed to protect the interest of Nigeria in the petroleum industry.

He observed that most problems in the petroleum industry had nothing to do with NNPC.

“We are faithful and loyal to the economic interest of this country. We are not criminals. We are not thieves, but we will protect our dignity and honour,” Kyari said.

 Economic Sabotage: Count us Out — NNPC Ltd

The group chief executive officer of NNPC Ltd, Mele Kyari, has said the company has not breached any of the enabling laws guiding its dealings with partners and hence should be counted out of any claims of economic sabotage.

Kyari, who was addressing the Senate Ad-Hoc Committee investigating alleged economic sabotage in the Nigeria Petroleum Industry at the National Assembly on Wednesday, stated that refining business is a straightforward business which any investor should know before coming into the market.

“Refining business is a straightforward business. You must secure (a source for) your feedstock and you must find a market. This is basic and this determines what happens in any refinery anywhere in the world. That is the business of refining. We have done nothing to sabotage any domestic refinery,” Kyari stated.

According to the GCEO, the law is very clear on domestic crude oil supply obligations and also on providing for local refineries. However, Kyari added that the same law also said that there must be a willing buyer and a willing seller.

On the alleged importation of sub-standard products into the country, Kyari said the NNPC Ltd had nothing to do with that as the relevant regulatory agencies will, by law, not allow any sub-standard product into the country.

He also supported calls for the Ad-hoc Committee to beam the interactive sessions live on national television to prevent misinforming Nigerians.

He explained that there is enough infrastructure to produce two million barrels of crude per day but the challenges of crude oil theft, pipeline vandalism and absence of investment in the upstream are the major factors hindering the sector.

He said as a company owned by over 200 million Nigerians, the NNPC Limited had grown from a loss-making position to a profit-making entity.

While pledging full cooperation to the Committee in its efforts to unravel the allegations being investigated, Kyari said the NNPC Ltd, its entire board, management and staff remain loyal, faithful, and committed to Nigeria and will continue to act in line with the provisions of the Petroleum Industry Act (PIA), the Company & Allied Matters Act (CAMA) and other enabling laws and regulations governing the nation’s energy Industry.

“We are faithful, loyal and committed to the progress and development of this country. It is our duty to protect the overall interest of this great nation. We are not in breach of any rules,” Kyari concluded.