Reps allege NNPC spent N11 trillion rehabilitating ‘unproductive’ refineries, cite double payments

The House of Representatives ad hoc committee on the state of refineries in Nigeria says after spending N11.349 trillion to rehabilitate the nation’s refineries, it discovered duplication of projects and double payments.

This is sequel to the committee’s report. Ganiyu Johnson chaired the committee. The lawmakers in the House of Representatives considered the report at Tuesday’s plenary.

In its recommendation, the committee said, drawing from observations and findings, the committee established that the state of refineries in the country from 2010 to 2020 was comatose.

The committee said the refineries were non-functional, unproductive and wasteful, adding that it could not ascertain the actual cost of rehabilitating the Nigerian refineries within the periods.

The committee added that obvious omissions were noted in the submissions made by the NNPC and that there were seeming duplications of projects and possible double payments.

The committee noted that the total estimated cost of rehabilitating the Nigerian refineries might be put at ₦11,349,583,186,313.40. It also revealed that other additional actual costs reported in foreign currencies amounted to $592,976,050.00 and £4,877,068.47, and £3,455,656.93.

In its recommendation, the committee said the NNPCL should take full advantage of the Petroleum Industry Act 2021, passed by the National Assembly, to fast-track the rehabilitation programme of the refineries.

It further noted that the NNPCL and the contractor, Tecnimont SPA of Italy, be urged to ensure that phase Olone of the rehabilitation works in refinery area five of the Old Port Harcourt refinery.

The committee said this was with the processing capacity of 60,000 barrels per day earlier expected to be restored to 54,000 barrels per day of processing capacity, representing 90 per cent capacity utilisation by March 2023.

The committee said this should unfailingly meet the new target date of September 2023, adding that the NNPCL and the contractor be urged to ensure that phase two of the rehabilitation works in refinery areas one and two of the New Port Harcourt Refinery (NPHR).

This, according to the committee, should be with an installed capacity of 150,000 barrels per day, restored to the estimated processing capacity of 135,000 barrels per day, representing 90 per cent capacity utilisation. This is to deliver a combined processing capacity of 189,000 barrels per day from the OPHR and the NPHR and achieve the targeted date of December 2023, among other recommendations.

(NAN)