29th September 2023

FG spent N4.8trn as running cost on ‘unproductive’ refineries – Reps panel

The Federal Government spent over N4.8 trillion as operating cost for three refineries despite all them operating below 11 percent, an investigation by an ad hoc committee of the House of Representatives has disclosed.

The committee, chaired by Ganiyu Johnson, presented its report on Tuesday and was adopted by the House Committee of the whole.

According to the report, the Federal Government spent over N4.8 trillion as operating cost on refineries that were unable to produce refined petroleum resources, while that government at the same time was spending trillions on fuel subsidy.

The report stated that the three refineries became unproductive from year 2010 making the following range of losses: Port Harcourt Refinery Company at 7.6% loss to the tune of N132,526.17 billion from 2012; Warri Refinery at 6% loss to the tune of N111,376 bllion from 2014; and Kaduna Refinery at 10% loss to the tune of N122,621.97 billion from 2014.

To address the drain by the refineries, the House resolved that the Federal Government and the NNPCL should consider outsourcing the Operations and Maintenance (O&M) of the refineries to reputable international oil companies to guarantee reliability, optimal operational availability and to maximize value for money to the nation.

More from my site

See also  Nigerians Act Religious Yet Steal, Cheat – Buhari
Translate »