A study by an ad hoc committee of the House of Representatives revealed that FG spent N4.8 trillion on running costs for three refineries. Although, they all had operating margins below 11%.
The committee, led by Ganiyu Johnson, delivered its findings on Tuesday, which was approved by the House Committee.
The research claims that the Federal Government spent N4.8 trillion on refineries that couldn’t generate refined petroleum resources as operational costs. While it spent trillions on fuel subsidies.
According to the report, the three refineries lost productivity starting in 2010. It suffered losses ranging from 7.6% to 10%, totaling N132,526.17 billion from 2012 in Port Harcourt. N111,376 billion in 2014 in Warri and N122,621.97 billion in 2014 in Kaduna.
The House decided that FG and NNPCL should outsource the refineries’ Operations and Maintenance (O&M) to reputable foreign oil companies. This would address the drain from the refineries. This would guarantee dependability, optimal operational availability, and the best possible value for the country.
cc: Daily Post Ng
