February 25, (THEWILL) – Another month, February 2024, comes to an end this week without the embattled Port Harcourt Refinery starting production. This is two months after the Federal Government had repeatedly assured Nigerians that the unending-repairs of the refinery would end in December 2023.
THEWILL also recalls that the Senate on October 24, 2023 constituted an ad-hoc committee to investigate all contracts estimated at over N11.35 trillion awarded for the rehabilitation of the four moribund refineries in the country.
This followed a motion brought by Senator Sunday Karimu on the unending repairs of the nation’s refineries despite the huge resources invested in fixing them.
While presenting his motion, Senator Sunday Karimi (Kogi West) averred that from 2010 till date, the Nigerian Government had spent N11.35 trillion on contracts to rehabilitate the four refineries, but they were still unproductive.
Senator Karimu noted that between 2010 to date, Nigeria was estimated to have spent well over N11.35 trillion on the renovation of the refineries, yet they remained unproductive.
In graphic details, the lawmaker said, “Despite the moribund state of the four refineries, the operating costs of these refineries between 2010 and 2020 is estimated at N4.8 trillion Naira. The refineries are estimated to make a cumulative loss of N1.64 trillion, within four years.”
He added, “We are concerned that the Federal Government of Nigeria has carried out rehabilitation projects in Port Harcourt Refinery Company (PHRC) over a period of seven (7) years from 2013-2019 at an estimated cost of N12,161,237,811.61. In addition, on the 18th March 2021, a rehabilitation contract was executed between NNPC/PHRC and Tenenimont SPA at a Lump Sum of $1,397,000,000.00, about N75 billion naira amidst global public criticism, no result has been achieved.
“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.
Senator Karimu expressed further concern that in a bid to revitalise the Warri Refinery, the Federal Government injected huge public funds into revamping the facility to the tune of over N28, 219, 110, 067.10 between 2014 and 2019.”
The Senate, consequently, constituted a 7-member ad-hoc committee to investigate the matter and to submit their findings to the upper legislative chamber within four weeks – November 21, 2023. Four months thereafter, no words have come from the lawmakers on the outcome of the probe.
THEWILL had, also, reported the concerns raised by stakeholders and industry experts over the Senate’s legislative frivolities called probe.
An oil and gas business practitioner, Engr Canice Benjamin, advised the upper legislative chamber to settle down and enjoy their new SUV cars gifted by the Federal Government instead of embarking on a “public, dance of shame”.
Engr Benjamin recalled that the Senate had engaged in countless probes of the oil and gas industry as well as the Nigerian National Petroleum Company Limited (NNPCL) without producing any concrete result that can be identified as problem-solving.
Mr Rufai Oseni, a presenter on the Arise Television News ‘The Morning Show’, described the exercise as one that will end the way of the notorious Senate probes of the Niger Delta Development Commission (NDDC).
Only recently, the Minister of State for Labour and Employment, Mrs Nkeiruka Onyejeocha, during a tour of the facility, disclosed that the refinery would resume full production “soon”.
According to her, the refinery will produce two million litres of Premium Motor Spirit, otherwise known as petrol, and 2.2 million litres of diesel per day upon resuming operations.
“The old plant would begin with 54,000 barrels per day, which would produce two million litres of PMS and 2.2 million litres of diesel per day, while the new plant which is currently going through its last phase of completion would also begin production before the end of the year. The combined capacity of the two plants, when fully on stream, would produce 10 million litres of PMS per day, according to NNPCL.
While Nigerians were still expecting the outcome of the Senate probe of the refinery repairs, the federal lawmakers on February 20, disclosed that the upper legislative chamber had resolved to probe how the N30 trillion Ways and Means loans of the Central Bank of Nigeria was obtained and spent by the administration of former President Muhammadu Buhari.
Ways and Means is a loan facility through which the CBN finances the government’s budget shortfalls.
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