$18bn Spent, Still No Fuel: House Moves on Refinery Failures

The Observer
2 Min Read

Despite a staggering $18 billion investment in refinery maintenance, Nigeria’s four state-owned refineries remain largely comatose and lawmakers are not taking it lightly.

The House of Representatives Committee on Petroleum Resources (Downstream) has launched a sweeping investigation into the failed Turn Around Maintenance (TAM) projects, the recurrent shutdowns of the Warri and Port Harcourt refineries, and bottlenecks facing local modular refineries in accessing crude oil.

At a press conference on Wednesday, committee chairman Ikenga Ugochinyere described the state of the sector as “deeply troubling,” questioning why the refineries remain inactive despite repeated promises of revival and heavy capital injections.

“We are determined to unearth why, after billions spent on maintenance, Nigerians are still relying on imports for petrol,” Ugochinyere said. “We are also reviewing crude supply constraints facing modular refineries and the slow incorporation of artisanal refiners into the official system.”

The committee is setting up multiple technical sub-committees to fast-track investigations into a broad range of issues  from allegations surrounding the Dangote Refinery’s control of product transportation and retail, to unresolved petitions involving NNPC Retail staff and downstream market monopolies.

Among the targets are:

The exact status of the four state-owned refineries;

How funds allocated to maintenance were utilised;

The failure of feedstock supply to modular refineries;

Delays in implementing key aspects of the Petroleum Industry Act (PIA).

There are also concerns about threats to competition within the downstream sector. Lawmakers say they will oppose any attempts to create monopolies, especially in retail distribution.

“This is about ensuring that no single player dominates Nigeria’s oil sector,” Ugochinyere said. “Our people deserve fairness, accountability, and results.”

The committee has dismissed a petition demanding the dissolution of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), affirming that only the President has such powers under the PIA.

Lawmakers are now considering amendments to the PIA to address gaps and emerging challenges in the sector. Reports from the technical sub-committees are expected in the coming weeks.

 

Share This Article
Leave a comment