THE House of Representatives on Tuesday resolved to carry out a comprehensive investigation of the Turn Around Maintenance (TAM) carried out on the nation’s four refineries.
The House then resolved to set up an ad hoc Committee to carry out the investigation to among other things identify the private and corporate individuals that have refused to utilize the licences (regular and modular), the readiness and status of all current holders.
The Committee has three months to carry out the investigation.
The House resolution followed the adoption of a motion by Honourable Ayokunle Isiaka who said that despite being one of the largest oil-producing counties in the world, the country is not among the top three countries in Africa in terms of refining capacity.
He also said that Nigeria is the only member of the Organisation of Petroleum Exporting Countries (OPEC) that depends on imported refined petroleum products.
According to him, “Despite more than $20 billion that had been spent on TAM of the refineries built to refine 445,000 bpd, the refineries, over the years have fallen into disrepair with their average capacity utilization standing at an abysmal 11 percent, which is the worst performance record in Africa, compared 81 percent and 85 percent for Egypt and South Africa respectively.
“Cognizance should be taken of the fact that whopping $565m and lately, more than N264b had been spent on maintenance of the refineries, yet it was reported that the Nigerian National Petroleum Corporation (NNPC) is seeking for $1.8b to carry out another TAM to make the refineries attractive to investors.
“Despite major paradigm shift and consideration of different reliefs; including reduction of licensing fees for new refineries from $1m to $50,000 to make domestic refining attractive and reduce the huge Capital flight to fuel importation, meet local demand and possible exports, only Aliko Dangote has put the license to use and no efforts have been made to revoke the licenses given to individuals and corporate organizations to build refineries which have not yet been utilized”, he said.
The motion was supported by voice vote by the presiding officer, Deputy Speaker, Hon Yussuff Lasun.