In a shocking revelation at the Platform Nigeria symposium held on Monday, October 2 in Lagos, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, disclosed that the National Assembly has squandered over N10 trillion on Nigeria’s refineries, all of which remain non-operational.
Oyedele went further to advocate for the sale of these underperforming assets.
He argued, “Nigerians should come together and say please make sure that our refineries do not work. We should sell them.”
Oyedele explained that the cost of processing crude oil in Nigerian refineries is exorbitant due to inefficiencies, and selling them might be the only viable solution.
This revelation comes on the heels of the National Assembly’s announcement in August 2023 to probe the alleged N11.3 trillion spent on turn-around maintenance of refineries between 2010 and 2020.
The House of Representatives Committee Chairman on Public Accounts expressed concern over the deplorable state of the refineries despite massive financial injections.
Meanwhile, the government has initiated another round of refinery rehabilitation for Warri, Kaduna, and Port Harcourt refineries.
The Minister of State for Petroleum Resources, Heineken Lokpobiri, has stated that all refineries will be operational between December 2023 and 2024.
Supporting this call for privatization, oil and gas analyst Dan D. Kunle highlighted the government’s inefficiencies in managing the sector.
He argued that the private sector, known for its efficiency, should take over operations in the oil and gas industry.
Kunle also lamented the underutilization of critical components within the Warri refinery, which, if privatized, could stimulate the country’s tire industry.
The debate over privatization versus government control in the oil and gas sector continues to intensify, with growing consensus that inefficiencies must be addressed for the industry to thrive.
As Nigeria grapples with the costly legacy of non-functioning refineries, the nation faces a critical choice in charting the future of its energy infrastructure.
