The Energy Reforms Advocates of Nigeria and the APC Youth Vanguard for Change are urging President Bola Ahmed Tinubu to conduct an independent, transparent investigation into the allocation of funds intended for refinery repairs by the Nigerian National Petroleum Corporation Limited (NNPCL).
In a press release on Friday in Abuja, Dr Opialu Fabian, the group’s convener, highlighted the lack of progress and continued mismanagement surrounding the refurbishment of Nigeria’s Port Harcourt, Warri, and Kaduna refineries. Despite over three years of promises and escalating costs, NNPCL has only offered repeated delays and unsatisfactory explanations.
Persistent Issues Demand Action
Fabian stated that Nigeria’s reliance on imported fuel, worsened by the influence of an internal “cabal” that benefits from importing substandard products, remains a significant burden on the nation. He explained that while Nigeria possesses the infrastructure and capability to produce fuel locally, certain entities allegedly obstruct refinery operations for personal gain, undermining national economic stability.
“NNPCL’s leadership seems indifferent to the daily struggles of Nigerians,” Fabian noted, referencing the queues, high fuel prices, and the inflationary impact on goods and services. “Millions suffer as they can barely afford transportation or household energy.”
Fabian called for an immediate audit of the rehabilitation contracts managed by NNPCL, stressing that billions of dollars have been allocated without yielding any effective outcomes.
Reforming Contract Awards
He recommended that the government establish a rigorous framework for awarding contracts, one grounded in merit and accountability rather than political ties. Fabian advised that future contracts for refinery repair should be linked to verifiable milestones and deliverables, ensuring that funds are allocated and tracked efficiently.
The activist also warned that the mismanagement of Nigeria’s refineries diminishes the country’s standing on the global stage and reduces its appeal to foreign investors. He urged the federal government to demand a comprehensive report from NNPCL on the current status of the Port Harcourt, Warri, and Kaduna refineries, including a detailed financial breakdown, missed deadlines, and a clear timeline for project completion.
Background Information
On August 7, the Nigerian Senate expressed concern over the lack of results from the $1.5 billion allocated in 2021 for the Port Harcourt Refinery’s turnaround maintenance. During a recent session, Senator Opeyemi Bamidele, Chair of the Senate Ad Hoc Committee on Economic Sabotage in the Petroleum Industry, criticised the neglect of public refineries amid the continued success of private ventures.
The $1.5 billion rehabilitation plan, sanctioned by the Federal Executive Council (FEC) and led by the Ministry of Petroleum Resources, was expected to boost domestic refining. However, the NNPCL’s failure to meet its commitment has left Nigeria increasingly reliant on costly fuel imports.
Despite recent assurances from NNPC’s CEO Mele Kyari that the Port Harcourt refinery would be operational by August and the Kaduna and Warri facilities by late 2025, public confidence remains low due to past unmet promises.
This pressing situation highlights the urgent need for reforms in the Nigerian oil sector, particularly concerning transparency in fund allocation, accountability in project management, and adherence to realistic timelines for refinery repairs. The probe’s results could play a pivotal role in restoring domestic refining capability and reducing dependency on imported fuel, with potential economic benefits for Nigeria’s long-suffering citizens.
