With the rehabilitation of the nation’s oil refineries gulping about $18 billion, and the Federal Government considering the sale of the national assets, the African Democratic Congress (ADC) has demanded a full audit of the refineries.
In a statement on Thursday by its National Publicity Secretary and Coalition Spokesperson, Mallam Bolaji Abdullahi, the party questioned whether the Tinubu administration has been deceiving Nigerians, having recently spent over $2.8billion dollars on the refineries, before declaring that they were moribund.
Recall that the Nigerian National Petroleum Company Limited (NNPCL) announced in November last year that the Port Harcourt refinery had commenced crude oil processing, but was shut down for maintenance in May this year. While Warri and Kaduna Refineries are still undergoing rehabilitation.
Speaking in an interview with Bloomberg recently, on the sidelines of the 9th OPEC International Seminar in Vienna, Austria, the Group Chief Executive Officer (GCEO) of the NNPCL, Bayo Ojulari, disclosed that the rehabilitation of the refinery is becoming a bit complicated.
He stated that while the company is currently carrying out the review of the refineries, it’s uncertain whether they would be put up for sale.
“But what we’re saying is that sale is not out of the question. All the options are on the table, to be frank, but that decision will be based on the outcome of the reviews we’re doing now,” he said.
However, the ADC said that the APC government recently announced that the refineries were already working, therefore, it is curious that the same government, having spent such humongous amounts on the refineries, is now planning to sell them off.
“ADC is concerned about the perennial waste and underhanded dealings in the name of turnaround maintenance that never turned anything around but the personal fortunes of those involved. We believe this must not continue.
“We are however suspicious of the current moves being made by the government to selloff the refineries outright without giving full considerations to alternative options and without consultations with critical stakeholders. “Selling off the refineries under the prevailing circumstances is indeed conducive for all sorts of criminal dealings, whereby national assets could be deliberately devalued and sold to cronies.
“ADC therefore calls for a full and independent audit—financial, technical, and structural— before any sale is contemplated or privatisation is considered,” the party said in the statement.
It noted that” successive APC administrations have poured over $18 billion into the so-called rehabilitation of Nigeria’s refineries. The current administration is reported to have spent another $2.8 billion under the same pretext.
“Yet there is no verifiable increase in refining capacity, no observable cost efficiency, and no fuel security benefit accruing to the Nigerian people. Instead, the same refineries have remained idle or dysfunctional, while the government continues to fund the importation of refined petroleum products.
“Even Africa’s foremost industrialist, Alhaji Aliko Dangote, whose private refinery now stands as the only viable refining asset in the country, has publicly stated his doubts that these government-owned refineries can ever work again. And he is right to doubt. The infrastructure is obsolete, the operations are hollowed out, and the entire value-chain has become a black hole for public funds. So again, we must ask: what exactly is being sold, and why now?
“The truth is that if the intention all along was to privatise the refineries, then the years of huge public spending is at best a waste, and at worst a scam.
“Government cannot, in good conscience, expend public funds on assets under the guise of rehabilitation, only to turn around and offer them for sale—without accountability on the investments already made and without any public reckoning. In other climes, those responsible for such transactions would have faced judgments.
“The ADC believes that before any conversation about privatisation can proceed, there must be a comprehensive forensic audit of all funds allocated to refinery rehabilitation from 2010 to date. There must also be a third-party technical assessment to determine the true status and potential of the assets in question.
“The audit findings must be presented in full to the public through a legislative hearing, with civil society, energy economists, and anti-corruption agencies present. Until then, any attempt to sell these refineries must be considered not just illegitimate, but criminal,” the ADC said.
