FLASHBACK: Nigeria wasted billions of naira on TAM on 4 refineries despite Mele Kyari’s promise in 2019
Former President Muhammad Buhari appointed Mele Kyari as Managing Director, Nigerian National Petroleum Corporation (NNPC) after the retirement of Maikanti Baru from the corporation on 7 July 2019.
Kyari was appointed as the 19th GMD of the NNPC since its establishment.
Kyari while receiving taking over the mantle of leadership promised to make the four refineries work before the end of Buhari’s administration in 2023.
SolaceBase reports that the four refineries have a combined plate capacity of 445,000 bpsd (barrel per stream day), namely the: Warri Refinery and Petrochemical Company (WRPC); Old Port Harcourt Refinery; New Port Harcourt Refinery and Petrochemical Company (PHRC); and Kaduna Refinery and Petrochemical Company (KRPC).
However, as of August 2024, none of the refineries are working despite billions of naira wasted on the turnaround of them annually.
In 2019, NNPC records showed the amount expended on the refineries dropped to N218.18 billion. The NNPC also declared that N64.534 billion was spent on the three refining companies from January to June 2020.
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The NNPC said it spent N100 billion on the rehabilitation of the nation’s refineries in 2021.
According to the corporation, the fund was used to revamp the facilities throughout the year.
Although the specific refineries were not stated, according to the funding report, NNPC said it spent N8.3 billion every month in 2021 to revamp the refineries.
Meanwhile, at the beginning of President Bola Tinubu’s administration in May 2024, the NNPC promised to make the Port Harcourt Refining Company work but failed to commence operations after about six postponements.
Since December 2023, NNPC, gave Nigerians different dates, assuring citizens that the refinery would begin the sale of refined products soon.
In July 2024, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated categorically that the refinery would come into operation in early August.
While appearing before the senate recently in July, Kyari boasted, “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products.
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“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna, but that of Port Harcourt will commence production early August this year.”
However, this is mid-August, the refinery has yet to commence operations, creating concerns that this might be another failed promise from NNPC.
It could be recalled that the 210,000 barrels per day refinery was said to have reached what the NNPC called mechanical completion of rehabilitation work in December.
It stated that the facility would start refining 60,000 barrels of crude oil daily after last year’s Christmas break.
Later in January, Kyari said the refinery was being tested and would be ready by the end of January.
In mid-March, Kyari said the Port Harcourt refinery would commence operations in two weeks, April.
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