Reps seek answers over $18bn spent on non-functional refineries

Reps seek answers over bn spent on non-functional refineries

Isaac Samuel

The House of Representatives on Thursday directed its relevant committees to investigate the persistent non-functionality of Nigeria’s state-owned petroleum refineries in Port Harcourt, Warri, and Kaduna, despite about $18 billion reportedly spent on their rehabilitation over the past two decades.

The resolution followed the adoption of a motion moved by Lagos lawmaker Oluwaseun Whinghan during plenary proceedings presided over by Deputy Speaker Benjamin Kalu.

Nigeria has four government-owned refineries. Two of the refinaries are in Port Harcourt, and one each in Warri and Kaduna operated by the Nigerian National Petroleum Company Limited (NNPCL).

Over the years, the facilities have suffered from poor management and vandalism, leaving the country reliant on imported refined petroleum products.

Recently, billionaire industrialist Aliko Dangote expressed doubts over the refineries’ chances of returning to full operational capacity, while NNPCL Group Chief Executive Officer Bayo Ojulari indicated that selling off the assets might be considered.

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Whinghan, who represents Lagos’ Badagry Federal Constituency, said the House was concerned over the prolonged non-functionality of these strategic assets despite sustained rehabilitation efforts and the massive financial outlay.

He said, “The House is worried over the recent public statements by Nigeria’s foremost industrialist, Aliko Dangote, and former President Olusegun Obasanjo, expressing doubts about the viability of these refineries and describing the multi-billion-dollar investments as futile, sparking widespread public concern and outrage over potential mismanagement.

“We recall that in 2007, during the administration of President Olusegun Obasanjo, Alhaji Dangote and other private investors acquired the refineries, but the succeeding administration of President Umaru Yar’Adua reversed the transaction, opting instead for rehabilitation using public funds — a decision that has yielded no significant operational improvement.

“The House is concerned that on Thursday, July 10, 2025, the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, in an interview published by The PUNCH, sought to distance the current administration from the monumental mismanagement of Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna.

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“He confirmed their continued non-functionality despite significant investments estimated at $18bn and proposed the potential sale of these assets, thereby raising critical questions about fiscal responsibility, strategic asset management, and the long-term implications for Nigeria’s energy security and economic stability.”

According to the Lagos lawmaker, Nigerians are worried that despite consistent annual budgetary allocations over the years, “there is no verifiable evidence of substantial rehabilitation outcomes, representing a gross misuse of public funds and a betrayal of public trust.”

He added, “We are aware that Nigeria’s economic stability and energy security are inextricably linked to a functional and accountable downstream petroleum sector, particularly following the removal of the petrol subsidy by the current administration, which underscores the urgent need for operational refineries to mitigate economic hardship.

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“We are convinced that a comprehensive, transparent, and time-bound investigation is essential to ascertain the current operational and structural status of the Port Harcourt, Warri, and Kaduna refineries; examine the utilisation of all allocated funds and the effectiveness of rehabilitation efforts; identify any infractions, mismanagement, or corrupt practices in the management of these assets; and propose actionable reforms to safeguard future public investments and ensure the sustainability of Nigeria’s oil and gas infrastructure.”

Following the adoption of the motion, the House urged its Committees on Petroleum Resources (Upstream, Downstream, and Midstream), Gas Resources, and Public Assets “to investigate funds appropriated and disbursed for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries between 2010 and 2024.”

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