How Nigeria’s N200billion Investments In Rehabilitation, Repairs Failed To Revive Moribund Refineries Since 2021

The Nigerian National Petroleum Company Limited (NNPCL) successful 2021 noted that it spent N8.3billion each period to rehabilitate refineries. 

The institution had stated this during a presumption to the Federation Accounts Allocation Committee. 

There are 4 refineries nether the NNPC, they are the Port Harcourt refineries, Kaduna Refining Production Company, and the Warri Refining Production Company. 

All of the 4 person 445,000 barrels per time accumulation capacity. 

In the 2022 fiscal statements, NNPC radical noted that it spent the sum of N114.2 cardinal connected repairs and maintenance, per authoritative information provided by it. 

Usually, repairs and attraction are earmarked for refineries, this is arsenic Pipelines which besides whitethorn necessitate immoderate attraction person its ain outgo earmarked nether the outgo of income portion repairs and attraction are labelled nether “General and Administrative expenses”.

Specifically also, documents seen by SaharaReporters noted that betwixt January and July, 2022, the NNPC spent N54 cardinal connected refinery rehabilitation. This is based connected the August 2022 NNPC FAAC report.

With NNPC stating that it spent N100 cardinal successful 2021 and different N114 cardinal recorded for ovum afloat twelvemonth 2022, it would mean that betwixt 2021 and 2022, NNPC spent N214 cardinal connected rehabilitation of refineries, repairs and maintenance.

Despite these expenditures, the refineries person failed to work. 

Image

In June 2022, the Chief Executive Officer of the NNPC, Mele Kyari was quoted arsenic stating that the refineries person stopped functionality.

More recently, the authorities promised to revive Port Harcourt refinery but failed to fulfil its promise. The NNPC has continued to committedness Nigerians since 2021, that the refinery volition relation but has not fulfilled its promises since then.

Once operational, the Port Harcourt refinery is expected to person a accumulation capableness of 210,000 barrels per day.

Nigeria has relied heavy connected importation of petroleum successful the lack of functional refineries, a concern that has driven up the landing outgo of fuel. 

This improvement has besides been blamed successful portion for the surge successful ostentation successful Africa’s largest economy, particularly aft the authorities nether the medication of Bola Tinubu yanked disconnected substance subsidies. 

Many Nigerians person expressed concerns implicit the quality of the NNPC to marque refineries functional again, fixed dense investments successful the past and nonaccomplishment there-in.

Follow the Sahara Reporters transmission connected WhatsApp: https://whatsapp.com/channel/0029VaFClvtH5JM6SSsP7M2Y