A combined total of $3 billion was allocated for the rehabilitation of Nigeria's three major refineries Port Harcourt, Warri, and Kaduna with the aim of revitalizing the nation's domestic refining capacity. However, concerns have arisen regarding the utilization of these funds, as the refineries remain largely non-operational
.Breakdown of Allocations:
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Port Harcourt Refinery: $1.5 billion allocated for turnaround maintenance.
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Warri Refinery: $656.9 million allocated.
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Kaduna Refinery: $740.6 million allocated.
Despite these substantial investments, the refineries continue to underperform. The Port Harcourt refinery, with a capacity of 150,000 barrels per day, is reportedly operating at just 60,000 barrels per day, and only the Crude Distillation Unit is active, rendering it incapable of producing Premium Motor Spirit (PMS), commonly known as petrol. Similarly, the Warri and Kaduna refineries remain inactive, despite significant financial commitments.
Civil society organizations, including a coalition of 145 groups and human rights lawyer Chief Femi Falana, have raised concerns over the lack of transparency and accountability regarding the utilization of the allocated funds. They have called on the Nigerian National Petroleum Corporation Limited (NNPCL) to provide detailed explanations for the underperformance of the refineries and the apparent mismanagement of resources.
The Socio-Economic Rights and Accountability Project (SERAP) has also urged the NNPCL's Group Chief Executive Officer, Mele Kyari, to account for and explain the whereabouts of the alleged missing $2.5 billion meant for refinery rehabilitation and other oil revenues, as documented in the 2021 annual report by the Auditor-General of the Federation.
President Bola Ahmed Tinubu has directed the NNPCL to expedite the reactivation of the Warri and Kaduna refineries, following the partial revival of the Port Harcourt refinery. The government aims to boost local production capacity and reduce reliance on imported refined petroleum products. The continued inactivity of the refineries, despite substantial investments, has led to public frustration. Nigerians are questioning the effectiveness of the rehabilitation efforts and demanding accountability from the NNPCL and the federal government. The situation underscores the broader challenges facing Nigeria's oil and gas sector, including issues of governance, transparency, and the efficient use of resources.
As investigations continue, stakeholders are calling for a comprehensive audit of the refinery rehabilitation projects to ensure that the allocated funds are utilized effectively and that the refineries are restored to full operational capacity.
