The House of Representatives has alleged that the Nigerian National Petroleum Corporation spent N1.48 trillion on the rehabilitation of refineries in the first seven years of the tenure of former President Muhammadu Buhari.
The House ad-hoc committee also alleged in its report that N2 trillion is still unaccounted for as the NNPC metamorphosed into Nigerian National Petroleum Company Limited NNPCL through the creation of the Petroleum Industry Act.
Buhari’s government was heavily criticised for not fulfilling its promise that the three refineries owned by the country would become operational.
However, a report by the House of Representatives ad-hoc committee showed that a whopping N1.48tn was expended on refurbishing the facilities between 2015 and 2022 but sadly not a single drop of refined products emerged from them within the period.
” The Port Harcourt refineries received about $1.5bn for total rehabilitation, which was awarded to Technimont SPA of Italy, “whereas the same refinery awarded the contract for equipment of the refinery for over $250m yet to be delivered.”
The House of Representatives also called on the Federal Government to outsource the nation’s three refineries to international companies.
The refineries have a combined capacity of 410,000 barrels per day, for maximum production
The House also asked the NNPCL to take full responsibility for the delays in rehabilitating the moribund refineries, urging the nation’s oil firm to be sincere with Nigerians on the true state of the facilities.
The ad-hoc committee claimed in its report that its findings showed that an asset worth $64bn (about N28tn) was unveiled by former President Buhari but during the transfer, only $58.8bn (N26tn at the official rate of N450 to $1) was transferred, leaving a balance of N2tn unaccounted for.
‘’From findings, asset worth $64bn (about N28tn) was unveiled by Mr President (Buhari) but during transfer, only $58.8bn (N26tn at the official rate of N450 to $1) was transferred, leaving a balance of N2tn unaccounted. NNPCL should be meant to re-assess her accounting system,” it said.
The committee recommended that the NNPCL and Federal Government “should work modalities that will ensure removal of subsidy in accordance with the Petroleum Industry Act that stipulates that subsidy be removed within six months of operation of the PIA.”
