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Reps order probe into $18bn spent on ailing refineries

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The House of Representatives on Thursday mandated its relevant committees to investigate the non-functionality of state-owned petroleum refineries in Port Harcourt, Warri, and Kaduna, despite the reported expenditure of about $18bn on their rehabilitation over the past two decades.

The resolution followed the consideration and adoption of a motion on notice moved by Lagos lawmaker, Oluwaseun Whinghan, during a plenary session presided over by the Deputy Speaker, Benjamin Kalu.

The Federal Government owns four petroleum refineries — two in Port Harcourt and one each in Warri and Kaduna.

Managed by the Nigerian National Petroleum Company Limited, the refineries have suffered perennial decline due to poor administration and vandalism — a situation that has left the country dependent on imported refined products.

Recently, billionaire businessman Aliko Dangote argued that the chances of the refineries returning to optimal operation were slim, even as the Group Chief Executive Officer of NNPCL, Bayo Ojulari, stated that selling off the national assets would not be ruled out.

Moving the motion, Whinghan, who represents the Badagry Federal Constituency of Lagos State, said the House was worried about the persistent non-functionality of Nigeria’s state-owned refineries in Port Harcourt, Warri, and Kaduna.

This, he noted, is despite over two decades of rehabilitation efforts and an estimated $18bn spent on turnaround maintenance, with no tangible results to show.

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.Related News

“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.

“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.

“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.”

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