Amid allegations of sabotage in the petroleum industry, the Senate is querying the over $1.5 billion approved in 2021 for the turn-around maintenance of the Port Harcourt Refinery with little or no result.
The ad-hoc committee investigating the sabotage, led by Senate Leader Opeyemi Bamidele, held a session yesterday with stakeholders.
The session was attended by Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; Group Managing Director, Nigerian National Petroleum Corporation Limited (NNPCL) Mele Kyari; Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe and Chief Executive Office, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, among others.
Bamidele faulted the dysfunctionality of government-owned refineries despite billions of dollars invested in their turn-around maintenance.
He said: “Under different administrations since 1999, the Federal Government has invested billions of dollars to maintain and turn around state-owned refineries in Kaduna, Port Harcourt and Warri. But the refineries are not functioning.
“In 2021 specifically, the Federal Executive Council approved $1.5 billion for the turn-around maintenance of the Port Harcourt Refinery. Yet, this investment has not yielded significant returns.
“For us in the Senate, we believe it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving”.
To nip these challenges in the bud, Bamidele said a joint committee of the National Assembly will investigate the allegations.
He insisted there would be no grandstanding during the investigative hearing, and promised that the committee would carry out its mandate fairly and impartially.
“From our findings, we will craft a legislative framework that will entrench 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”, Bamidele added.
Kyari said NNPCL should be counted out of any act of sabotage.
“We are faithful, loyal and committed to the greatness of this country.
“We are not criminals, thieves or saboteurs as being alleged through wrong narratives.
“The NNPCL under our management and by operational guidelines or relevant provisions of PIA and CAMA, is today a profit making company after about 43 years of losses.
“From 1.4 million barrels it was months back, production level has increased to 1.65 million barrels per day and will soon hit the expected two million barrels per day.
“There is nothing for NNPCL to sabotage because we are out to maximise value and profit for the country.
“We are not against any domestic refinery because the laws are clear as far as processes and procedures are concerned.
“As requested by the Minister of State for Petroleum, the planned public hearing should be televised live for Nigerians to know the truth”, he said.
Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri, said a lot of misinformation was already in the public on roles played by his ministry and other agencies in making it inclusive for interested investors.
The planned public hearing by the committee, he noted, would help Nigerians know the truth about happenings in the sector.
He said: “Please do us a favour by televising the planned investigative hearing on the alleged economic sabotage in the petroleum industry live”.
“This will do a whole lot of justice not only to the Senate but us in the executive and key leaders in the sector.
“Because of the fundamental nature of this investigation that has to do with alleged economic sabotage with the importation of substandard products into the country, we urge the Senate to ensure we do a live broadcast”, he said.
He said the government was committed to ensuring that local industries and all stakeholders in the oil sector were protected.
“We are committed to supporting Dangote Refinery; we are also supporting modular refineries and we have been resolving whatever issues they had brought to our attention”, the minister said.
Also speaking at the investigative hearing, Aliyu Suleiman, chief strategy officer, Dangote Industry Ltd., said the refinery started full production in March.
“Since then, we have processed about 50 million barrels of crude. We have produced about five million tons of petroleum products, and these petroleum products have been sold in various parts of the country”, he said.
In his remarks, the minister of finance and coordinating minister of the economy, Wale Edun said the increase in crude oil production would stabilise the country’s foreign exchange market.
