Senate Launches Investigation into NNPC Over N11.35tn Spent On Moribund Refineries In 13 Years

In a move to address the long-standing issue of mismanagement and financial wastage in Nigeria’s public sector, the Senate has established an ad-hoc committee to investigate the Nigerian National Petroleum Company Limited (NNPCL) over the spending of N11.35 trillion in the last 13 years on the Turn Around Maintenance (TAM) of the country’s non-operational refineries.

This decision follows years of concern over the inefficient use of public funds intended for refinery rehabilitation.

During a recent session, Deputy President of the Senate, Jibrin Barau, officially announced the formation of this committee in response to a motion brought forward by Senator Sunday Karimi, representing Kogi West. Karimi stressed the urgency of scrutinizing TAM projects in Nigerian refineries, aiming to detect and prevent further wastage of public resources.

The committee’s mandate includes assessing all contracts awarded for the refurbishment of state-owned refineries and evaluating the current progress on ongoing works to combat corruption and financial mismanagement within the sector. To ensure a comprehensive investigation, the Senate is collaborating with the Federal Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPCL, and the Bureau of Public Enterprises to determine the most effective approach for the commercialization and profitability of state-owned refineries.

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Additionally, the ad-hoc committee is working alongside the Senate Committee on Petroleum Resources (Downstream) to address the issue. The panel will engage the NNPCL, NUPRC, and the Nigerian Liquefied Natural Gas to discuss the country’s transition to green energy sources in alignment with the Paris Agreement on Climate Change.

In parallel, the Senate provided justifications for the recent purchase of 360 imported sport utility vehicles (SUVs) for its members, although the specific cost of each vehicle remains undisclosed. The senators explained that they chose imported SUVs due to their durability and cost-effectiveness. This decision has sparked a public debate regarding government expenditures at a time of economic challenges.

Senator Sunday Karimi defended the purchase, highlighting factors such as cost and durability. The purchase aims to address a debt of N16 billion owed to suppliers, which includes vehicles supplied to the 7th, 8th, and 9th Assemblies. The procurement allowed for a 25% margin, along with VAT and a 5% tax deduction.

These developments have ignited discussions on public spending, transparency, and accountability in Nigeria, as the nation grapples with economic and social challenges.