The Senate Committee on Petroleum Resources has gotten a mandate of the Red Chamber to investigate the disbursement of over $396 million by the Nigeria National Petroleum Corporation (NNPC) on the Turn Around Maintenance (TAM) of the four refineries between 2013 and 2015
The Senate Committee was given the mandate following a motion titled: “The moribund refineries in the country” sponsored by Senator Yusuf Abubakar Yusuf.
The Senator representing Taraba Central Senatorial District, said that within the last two years millions of dollars have been spent on the refineries and still Nigeria is still dependent on the importation of pertroleum products for domestic use.
Yusuf said: “The country, through NNPC, has in the past 25 years spent billions of United States (U.S) dollars in Turn-Around Maintenance of the refineries, the latest being over $396 million spent between 2013 and 2015 without meaningful result.”
“The refineries have remained moribund in the last 15 to 20 years and they are almost reaching total collapse due to lack of proposer maintenance of the facilities with a poor average capacity utilisation, hovering between 15 per cent and 25 per cent per annum.
“Despite the huge spending on TAM of refineries, NNPC recently announced a cumulative loss of N123.25 billion in 10 months (January to October, 2019), putting the total revenue of facilities at N68.82 billion, while total expenses incurred was N192.1 billion within the same period.”
“Such losses, when averted and combined with the huge expenditures in ‘under recovery’ on fuel pump price and properly channeled into full rehabilitation and construction of modern refineries, would positively impact on the economy and save the country from the embarrassment of importation of petroleum products and its ripple effect”.