Reps begin fresh probe of refineries’ repairs

The House of Representatives Committee on Petroleum Resources (Downstream) is to commence a comprehensive investigation into the multi-billion naira Turnaround Maintenance (TAM) of Nigeria’s major refineries, following concerns that the huge investments have failed to yield the desired results, culminating in fresh plans to sell or privatise them. The committee also announced a probe into […]

The House of Representatives Committee on Petroleum Resources (Downstream) is to commence a comprehensive investigation into the multi-billion naira Turnaround Maintenance (TAM) of Nigeria’s major refineries, following concerns that the huge investments have failed to yield the desired results, culminating in fresh plans to sell or privatise them.

The committee also announced a probe into the bottlenecks faced by local and modular refineries in accessing crude oil, including the controversial requirement for local refiners to travel abroad, specifically to Switzerland, to negotiate for crude supply meant for local processing.

Speaking at a news conference on Wednesday, the committee chairman, Hon. Ikenga Imo Ugochinyere, expressed concern that the much-celebrated return of the Port Harcourt and Warri refineries to production was short-lived, as operations have again come to a halt.

Daily Trust reports that this would be the latest in the series of probes of the refineries by the House of Representatives.

 

We’re acting on petitions – Reps

Ugochinyere questioned why the turnaround maintenance handled by a reputed company, failed to deliver lasting results. 

He said the House aims to uncover what went wrong before any final decision is taken on whether to sell or privatize the refineries.

He revealed that the committee has received several petitions from stakeholders in the petroleum sector, particularly owners of modular refineries, oil marketers, and retailers about policy-related challenges that threaten their investments. Of major concern is the alleged plan by the Dangote Refinery to monopolize petroleum products transportation and retailing.

According to him, stakeholders warned that such a move could lead to the collapse of smaller businesses and create nationwide tension in the downstream oil sector.

The committee also plans to reopen investigation into the acquisition of OVH Energy by NNPC Retail, following petitions and complaints from staff of NNPC Retail.

Ugochinyere recalled that the House had previously rejected a report on the matter and directed the committee to revisit it.

He said the committee will recommend amendments to the Petroleum Industry Act (PIA) to address emerging issues not covered by the existing law. 

These proposed amendments, he said, aim to strengthen the operations of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and enhance sustainability in the sector.

On the petition seeking the dissolution of the NMDPRA board, Ugochinyere disclosed that the committee resolved to dismiss it, noting that the PIA gives the President the power to appoint board members.

 “We cannot go back to the old order where every government fires people indiscriminately,” he said.

However, he emphasised that the committee would not shield anyone found guilty of corruption. 

“We are not out to protect anybody. If anyone is found to have engaged in corrupt activities, the law should be allowed to take its course,” he stated.

The committee will also investigate the exclusion of artisanal refiners from the petroleum value chain amid concerns that their expertise may be lost if they are not formally incorporated.

Other areas of investigation include the alleged abandonment of the Biomass Ethanol project and the ongoing controversy surrounding fuel importation and protection of local refiners.

Ugochinyere further announced that the House would host the inaugural edition of the annual Downstream Petroleum Week from October 2, 2025.

He assured that the House will not permit monopoly in Nigeria’s oil sector. 

He said all subcommittees have been tasked to fast-track the investigation of pending referrals and address critical issues affecting sustainability in the downstream sector, with the goal of making it more viable and investor-friendly.

 

‘Endless probes’

This is not the first time the House of Representatives would be announcing the probe of the refineries.

The House of Representatives had said in 2023 it would revisit the case of the N11.3 trillion allegedly spent by the Federal Government on the turn-around maintenance of Nigeria’s refineries between 2010 and 2020.

Rep. Bamidele Salam who was then Chairman, House Committee on Public Accounts expressed concern over the moribund state of Nigeria’s refineries in spite of the huge sum of money expended in trying to put them in shape in the last decade.

He said the era of wasting public funds on white elephant projects without consequences would soon be over.

Daily Trust recalled that in the 9th Assembly, the House of Representatives Ad Hoc Committee on the State of Refineries in the Country in a probe report disclosed that the Federal Government spent a total sum of over N11 trillion on rehabilitating refineries from 2010 to date.

In the report, the committee gave a breakdown of the actual cost of rehabilitating the Nigerian refineries between 2010 and 2020, and from 2020 to date.

The panel stated that the total cost of rehabilitation within the period is N11,349,583,186,313.40 while the additional costs in other currencies are $592,976,050, €4,877,068.47 and £3,455,656.93.

Giving a breakdown of the figures, the committee said while the cost of rehabilitation projects was N42,646,596,313.40, the deduction from Federation Account for rehabilitation was N191,670,000,000 and the losses by the refineries over a given period at N366,524,140,000.

While subsidy payments from 2010 to 2020 were N5,948,140,000,000, the total cost of running the refineries was N4,800,602,450,000.

According to the panel, the nation’s three refineries became unproductive from 2010, “making the following range of losses: Port Harcourt Refinery Company at 7.6 per cent losses to the tune of N132,526 from 2012; Warri Refinery at 6 per cent losses to the tune of N111.376bn from 2014; and Kaduna Refinery at 10 per cent losses to the tune of N122,621 from 2014.”

Daily Trust reports that the report was not considered until the last National Assembly came to a halt.

The country’s four state-owned refineries have an installed capacity of 445,000 barrels per day (bpd). The Port Harcourt facility was revived in November, 2024 while the Warri refinery also came on stream towards the end of last year.

The former NNPC Group Chief Executive Officer, Mele Kyari, disclosed during a facility tour that while the refinery in Warri is yet to be completed, refining operations have commenced.

However, in May this year, the NNPCL announced the shutdown of the Port Harcourt Refining Company (PHRC) for another round of maintenance.

 

‘Planned sale’

But penultimate week, the new Group CEO of the national oil company, Bayo Ojulari during an interview with Bloomberg on the sidelines of the 9th Organisation of the Petroleum Exporting Countries (OPEC) international seminar in Vienna hinted about plan to sell the refineries.

He admitted that it was becoming a ‘bit more’ complicated to revamp state-owned refineries.

When asked whether the ongoing review of the refinery rehabilitation strategy could result in selling the refineries, Ojulari said a sale remains a possibility.

“But what we’re saying is that sale is not out of the question. All the options are on the table, to be frank, but that decision will be based on the outcome of the reviews we’re doing now,” he said.

 

Nothing may come out of probe – Expert

Speaking with Daily Trust, Energy expert and former Chairman of the Society of Petroleum Engineers, Joe Nwakwe, said it is clear that as part of her oversight responsibilities, NASS can look into the activities of state owned enterprises.

“This should be with the clear objective of ensuring accountability and government resources are properly deployed,” he said.

He however said history has shown that this proves often leads to utility as no revelations were often provided to the public on the outcome of the investigations.

“Our history with these NASS probes is, however, not a cheery one. I am not excited nor expecting anything would come out it.”