Amidst widespread allegations of economic sabotage within Nigeria’s petroleum industry, the Senate has raised concerns regarding the $1.5 billion approved in 2021 for the turn-around maintenance of the Port Harcourt Refinery, which has yet to yield significant results.
The Leader of the Senate and Chairman of the Senate Ad-hoc Committee investigating the alleged sabotage, Senator Opeyemi Bamidele, addressed these issues during a session with industry stakeholders at the National Assembly Complex in Abuja.
The session saw attendance from key figures, including Minister of Finance and Coordinating Minister of the Economy Mr. Wale Edun, NNPCL Group Managing Director Malam Melee Kyari, NUPRC Chief Executive Mr. Gbenga Komolafe, and Nigerian Midstream and Downstream Petroleum Regulatory Authority CEO Mr. Farouk Ahmed.
Under the former administration of President Muhammadu Buhari, the Federal Executive Council sanctioned the $1.5 billion rehabilitation plan for the Port Harcourt Refinery. Despite this substantial investment, the refinery remains non-functional, forcing Nigeria to rely heavily on imported petroleum products.
Senator Bamidele voiced grave concerns about the ineffectiveness of the government-owned refineries despite the substantial funds allocated for their maintenance. He highlighted the irregular and problematic distribution and supply of refined petroleum products, evidenced by long queues at filling stations and a dependency on imported products despite Nigeria’s significant crude oil contributions to the global market.
Bamidele criticised the federal government’s investments in the refineries since 1999, noting that billions of dollars have been spent on the Kaduna, Port Harcourt, and Warri refineries with little to show in terms of functionality.
He emphasised the Senate’s stance that it is unfair and unpatriotic to neglect government businesses while private enterprises thrive.
To address these issues, the Senate plans to conduct a joint investigation with the House of Representatives into the alleged economic sabotage within the petroleum industry. Bamidele assured that the investigation would be carried out fairly and impartially, with no room for grandstanding. He emphasised the urgency of addressing the malfeasance in the industry to protect Nigeria’s economic prosperity, fiscal stability, and public health.
NNPCL’s Malam Melee Kyari defended the corporation, stating its loyalty to Nigeria’s economic interests and rejecting accusations of criminal activity. He stressed that many issues in the petroleum sector are beyond NNPCL’s control. Minister Edun expressed confidence that increasing crude oil prices would stabilise Nigeria’s foreign exchange market and praised the committee’s leadership for its commitment to an unbiased investigation.
The Senate’s ad-hoc committee aims to uncover factors contributing to the sabotage in the petroleum industry and develop a legislative framework to promote best practices, attract investment, and eliminate subterfuge within the sector. Bamidele reiterated the committee’s dedication to this mandate, pledging to conduct the investigation with honor and responsibility to protect Nigeria’s national interests.
