The recent call for an investigation into rehabilitation contracts awarded for Nigeria’s state-owned refineries from 2010 to 2023 is a long-overdue step in the right direction. The Senate’s decision to form an ad-hoc committee to uncover waste and mismanagement of public resources in managing the Kaduna, Port-Harcourt, and Warri refineries is a move that should be commended.
It’s no secret that Nigeria, as an oil-producing nation, should have been enjoying the benefits of self-sufficiency in petroleum production. However, the sorry state of the nation’s refineries is a stark reminder of missed opportunities and a lack of transparency in the management of public funds. The fact that billions of naira have been spent on rehabilitation and maintenance projects with little to show for it is deeply troubling.
Experts have consistently stressed that the launch of the Dangote Refinery could be a game-changer for Nigeria’s energy sector. However, the question that arises is why successive administrations allowed the country’s refineries to deteriorate to such a point that a single private project could outshine them.
The Senate motion rightly points out that between 2010 and 2020, Nigeria spent over N6 trillion ($ 7bn) on fuel subsidies due to its low refining capacity. This is a glaring illustration of the financial drain caused by the inefficiency of the refineries. Despite these massive financial injections, the refineries have mainly remained non-functional, continuously relying on imported petroleum products.
The investigation by the Senate ad-hoc committee should aim to uncover the reasons behind the failure of these rehabilitation projects. Are they a result of mismanagement, corruption, or a combination of factors? It is crucial to determine whether there was a lack of proper oversight in these projects or if they became opportunities for a few to enrich themselves at the expense of the nation’s well-being.
The motion also highlights the enormous operating costs of the refineries during the years they were non-operational. The cumulative loss of N1.64 trillion ($2 bn) within four years is staggering and inexcusable. It raises questions about the financial discipline and accountability within the organisations responsible for managing these facilities.
Furthermore, the motion underscores the urgent need to explore alternative energy sources in line with the Paris Agreement on climate change. This is a forward-thinking approach that Nigeria should embrace to reduce its reliance on fossil fuels and contribute to environmental sustainability.
In light of these revelations, the Senate must ensure that those responsible for the mismanagement of public funds are held accountable. Transparency and good governance are essential for the development and progress of any nation. The committee’s investigation should be thorough, and its findings must be made public to ensure that such financial mismanagement does not recur.
Nigerians deserve better, this investigation is a step toward ensuring that public resources are used efficiently for the benefit of all. It’s time to fix the refineries and end the wastage of public funds.
