Senate probes $1.5bn expenditure on Port Harcourt Refinery

The Nigerian Senate has announced a probe into the $1.5 billion approved in 2021 for the turn-around maintenance of the Port Harcourt Refinery, with concerns mounting over the lack of tangible results.

The Senate Ad Hoc Committee will spearhead the inquiry into the alleged economic sabotage in the Nigerian Petroleum Industry.

During an interactive session with stakeholders, the committee's chairman, Senator Opeyemi Bamidele, highlighted the dire situation, noting that government-owned refineries remain dysfunctional despite the substantial funds allocated.

"The federation is undergoing a truly challenging period. The distribution and supply of refined petroleum products has been irregular and problematic," Bamidele stated, pointing to the long queues at filling stations as evidence of the ongoing crisis.

Bamidele also expressed alarm over Nigeria's heavy reliance on imported petroleum products despite its major crude oil production.

"A situation whereby we now depend almost entirely on the importation of these products even when we daily supply the global oil market about two per cent of its crude oil requirements is worrisome," he remarked.

The Port Harcourt refinery is Nigeria's oldest, built in 1965, nine years after crude was first found under the marshy soil and creeks of the delta, where the Niger river meanders to the Gulf of Guinea. [Getty Images] Pulse Nigeria

Allegations of imported hazardous petroleum products

Concerns were also raised about importing hazardous petroleum products and the prevalence of substandard diesel in the country.

Bamidele emphasised that neglecting government businesses while private enterprises thrive is "unfair and unpatriotic."

Adding to the discourse, Engr. Farouk Ahmed, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), called for transparency in the investigation.

"The planned public hearing will give us the appropriate platform of laying our facts bare to Nigerians," Ahmed asserted.

Meanwhile, the Minister of Finance, Wale Edun, expressed confidence in the committee's ability to conduct an impartial investigation, underscoring the importance of uncovering the truth in this critical sector.