During the Platform Nigeria symposium in Lagos, Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, disclosed that the National Assembly has reportedly spent over N10 trillion on the country’s refineries without achieving functionality. Oyedele expressed the view that the refineries are better off sold, emphasizing that addressing inefficiencies is crucial.
He argued, “If Nigerian refineries process crude oil unless we deal with our inefficiency, one litre of petrol will be the most expensive in the world.” Oyedele suggested that the National Assembly’s expenditure on maintenance has not yielded positive results, and selling the refineries might be a viable option.
This assertion aligns with the National Assembly’s decision to probe the alleged N11.3 trillion expenditure by the Federal Government on refineries’ turn-around maintenance between 2010 and 2020. The deplorable state of the refineries despite substantial spending has raised concerns, with calls for consequences for wasteful spending.
In response to these challenges, the Buhari administration initiated another round of refinery rehabilitation, which is ongoing. Minister of State for Petroleum Resources, Heineken Lokpobiri, has announced plans to have all refineries active between December 2023 and 2024.
Oil and gas analyst, Dan D. Kunle, supports the idea of selling refineries, emphasizing the private sector’s demonstrated efficiency compared to the public sector. He advocates entrusting the downstream sector to private entities for optimal efficiency.
