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Reps Probe $18 Billion Spent on Nigeria’s Idle Refineries

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The House of Representatives has launched an investigation into Nigeria’s non-functional refineries after spending over $18 billion on rehabilitation projects in Port Harcourt, Warri, and Kaduna.

The House of Representatives has resolved to investigate the non-functionality of Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna, despite the federal government spending more than $18 billion on their rehabilitation over the past two decades.

The resolution was adopted during Thursday’s plenary session following a motion of urgent public importance moved by Sesi Whingan (APC, Lagos).

Decades of Spending, No Results

Presenting the motion, Whingan expressed deep concern over the persistent failure of the refineries to operate, despite repeated promises, budgetary allocations, and numerous Turnaround Maintenance (TAM) projects spanning successive administrations.

He noted that despite over 20 years of rehabilitation efforts and huge public investments, the three refineries remain non-functional, raising serious questions about accountability and fiscal responsibility within the petroleum sector.

Panel to Investigate Mismanagement

The House resolved to set up an investigative panel to probe the matter. The panel will, among other things, ascertain the current operational and structural status of the facilities, examine how public funds were utilised, and identify any agencies or officials responsible for infractions, mismanagement, or corruption.

Lawmakers also mandated the committee to recommend measures to ensure transparency and accountability in future rehabilitation projects within the oil and gas sector.

Lawmakers Demand Accountability

Several members of the House supported the motion, describing the situation as a national embarrassment. They argued that the continued importation of refined petroleum products despite massive investments in local refineries reflects systemic corruption and inefficiency.

Dangote, Obasanjo Question Viability of Refineries

Whingan cited recent public remarks by Aliko Dangote, Africa’s richest industrialist, and former President Olusegun Obasanjo, both of whom expressed doubts about the viability of Nigeria’s refineries and described the multi-billion-dollar investments as futile.

Their comments, he said, have sparked widespread public concern and outrage over potential mismanagement and waste of public resources.

He recalled that in 2007, during Obasanjo’s administration, the refineries were privatised and acquired by Dangote and a group of private investors. However, the subsequent government led by President Umaru Musa Yar’Adua reversed the transaction, opting instead for continued public funding of the refineries — an approach that has since yielded little to no progress.

NNPCL Boss Confirms Refineries Remain Moribund

Whingan also referenced an interview granted by the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Bayo Ojulari, published by The Punch on 10 July 2025, where the NNPC boss confirmed the refineries’ continued non-performance.

Ojulari reportedly stated that the facilities remain moribund despite substantial public investments, suggesting that the federal government consider selling them. His comments have further raised public concern about the long-term fate of Nigeria’s refining assets.

Whingan described the situation as “a gross misuse of public funds and a violation of public trust,” noting that billions continue to be appropriated annually for refinery rehabilitation with no verifiable outcomes.

He stressed that Nigeria’s economic stability and energy security are heavily dependent on functional refineries, especially following the removal of petrol subsidy by the current administration, which has led to rising fuel costs and widespread hardship.

The lawmaker warned that the continued failure of the refineries undermines industrial capacity, job creation prospects, and foreign exchange stability, while increasing the nation’s dependence on imported petroleum products.

Debate Over Scope of Investigation

Debate soon ensued on the floor over the scope and propriety of the new ad hoc committee, with some lawmakers questioning the need for another probe into an issue already under consideration by an existing standing committee.

Ibe Osonwa (LP, Abia), a member of the House Committee on Petroleum Resources (Downstream), raised concerns that the new motion amounted to a duplication of legislative efforts.

Osonwa noted that the downstream committee already exercises oversight over refinery operations and has been actively engaging relevant government agencies in its ongoing investigations.

He therefore moved an amendment, urging that the motion be referred instead to the Committee on Petroleum Resources (Downstream) rather than creating a new ad hoc committee.

His amendment was seconded by Victor Obuzor (PDP, Rivers), who supported the argument for legislative efficiency and coordination between standing committees.

Whingan Defends Motion for Ad Hoc Committee

Responding, Whingan disagreed, maintaining that the issue of Nigeria’s non-functional refineries cuts across several oversight committees of the House.

He argued that the creation of a joint or ad hoc panel would ensure broader oversight, accountability, and inclusiveness across relevant sectors.

Deputy Speaker Clarifies Committee Mandate

At this point, Deputy Speaker Benjamin Kalu, who presided over the plenary, intervened to clarify the House Rules on the mandate of committees.

In response, Peter Uzokwe (APGA, Imo) read from the Standing Orders, outlining the functions of the committee:

After listening to both arguments, Mr Kalu put the amendment to a voice vote. The majority of members voted against the amendment.

The original motion by Mr Whingan was thereafter adopted, and the ad hoc committee was asked to proceed with the investigation into the $18 billion refinery rehabilitation expenditure.

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