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Senate Probes NNPC Over $396m Refinery Maintenance Fee …Urges Isolation Of Travellers From China, Others To Check Coronavirus
The Senate has directed its Committees on Petroleum Resources to investigate the expenditure of over $396million on the Turnaround Maintenance (TAM) of the nation’s four refineries between 2013 and 2015.
This move followed a motion titled: “The moribund refineries in the country,” sponsored by Senator Yusuf Abubakar Yusuf, representing Taraba Central Senatorial District.
Yusuf, in his lead debate, noted that the country has four petroleum refineries with two located in Port Harcourt and one each in Kaduna and Warri, respectively.
He noted that the refineries were established to adequately supply and serve needs for Liquefied Petroleum Gas (LPG), Premium Motor Spirit (PMS), Dual Purpose Kerosene (DPK), Automotive Gas Oil (AGO), Low Pour Fuel Oil (LPFO), High Pour Fuel Oil (HPFO) and Aviation Turbine Kerosene (ATK) for both local consumption and exports.
He lamented that despite the alleged spending of $396million for TAM of the refineries between 2013 and 2015 there is no tangible result to show in terms of local production.
He insisted that the amounts being expended on TAM of the refineries in the last 25 years notwithstanding, Nigeria is still solely dependent on importation of petroleum products for domestic use.
He said that the country will likely slide into recession once again if the humongous amount for TAM is added to the huge ‘under recoveries’ presently being incurred by the NNPC in the importation of petroleum products, put at over N123.25billion.
“The country through NNPC has in the past 25 years spent billions of US dollars in Turnaround Maintenance of the refineries, the latest being over $396million spent between 2013 and 2015 without meaningful result,” Yusuf said.
He added that “the refineries have remained in moribund state in the last 15-20 years and is almost reaching total collapse due to lack of proposer maintenance of the facilities with a poor average capacity utilization hovering between 15 percent and 25 percent per annum.”
Senator Yusuf said “despite the huge spending on turn-around Maintenance of refineries, NNPC recently announced a cumulative loss of N123.25billion in 10 months (January to October, 2019), putting the total revenue of facilities at N68.82billion, while total expenses incurred was N192.1billion within the same period.”
He warned that “such huge wastage and slippages amidst the nation’s tight economy, if not addressed, may lead the country back to recession.”
“Such losses, when averted and combined with the huge expenditures in ‘under recovery’ on fuel pump price and properly channelled into full rehabilitation and construction of modern refineries, would positively impact on the economy and save the country from the embarrassment of importation of petroleum products and its ripple effect,” he said.
In his contribution, Senator Ibikunle Amosun (Ogun Central) said one of the challenges confronting the country is lack of maintenance culture.
He said it was not the first time attention was being drawn to the near collapse of the refineries in the country.
He urged his colleagues to do a thorough job during the investigation process.
“Oil should be a blessing to us but in Nigeria, it makes a lot of establishments lazy. We should be concern about it.
“The refineries are bad and people are now taking the crude outside the country and bringing back refined products to the country on exorbitant prices,” Amosun said.
In its resolutions mandated the Committee on Petroleum Downstream, Upstream and Gas to carry out a holistic investigation on the Turnaround Maintenance expenditures and the current state of the refineries as well as convoke stakeholders’ conference with the aim of finding ways to revamp them.
Meanwhile, worried by the recent outbreak of the deadly disease – Coronavirus in China, which has spread quickly to some other countries, the Senate, yesterday, advised the Federal Ministry of Aviation to immediately take steps to ensure that all persons arriving from China, especially Chinese citizens, be self-isolated for, at least, two weeks to ascertain their health status before mixing up with the public.
The Senate also extended the call for self-isolation to travellers from other countries that had recorded incidents of the infection.
The upper chamber also advised the Nigerians who intend to travel to Asian countries to put all arrangements on hold until the Coronavirus outbreak is eliminated.
The lawmakers further called on the Federal Government to allocate more funds to the Nigeria Centre for Disease Control (NCDC) to enable it be at its best to ensure the safety of the people.
These resolutions, among others, came sequel to the consideration of a motion titled: “Coronavirus Outbreak and Preventive Response Towards Stemming it’s Spread in Nigeria”, sponsored by Senator Chukwuka Utazi (Enugu North).
Utazi, in his presentation, explained that the virus was spread through the air by coughing or sneezing, close personal contact, touching a contaminated object or surface, and rarely by facial contamination.
He added that the human Coronavirus was previously reported to cause severe symptoms such as acute respiratory syndrome, following the 2019 Novel Coronavirus (2019-nCov) outbreak that began in Wuhan, China.
Utazi recalled that in response to the outbreak of the killer virus, “China put millions of people in three of its cities on lockdown in an effort to contain a Coronavirus outbreak that has killed 170 and infected more than 7,000 persons.”
According to him, “Health officials fear the number of infected people will rise rapidly as hundreds of millions of Chinese people travel within China and abroad during the weeklong Lunar New Year which begin on Saturday.”
The lawmaker commended the efforts already being made by the Federal Ministry of Health through the Nigeria Centre for Disease Control (NCDC) in monitoring the outbreak of the respiratory tract infection caused by the Coronavirus.
According to him, the aviation regulatory agencies recently stepped up surveillance across operating airlines and international airports nationwide, as well as issued a travel advisory in a bid to contain any case of the Coronavirus pandemic.
In his contribution to the motion, Senator James Manager (Delta South), raised alarm that Nigeria and other countries are at risk of experiencing an outbreak given what he described as the uncontrolled influx of Chinese nationals from one country to another.
Manager, who likened the Coronavirus to the deadly Ebola virus, urged Nigerian authorities to rise to the occasion, warning that “almost all powerful countries in the world are already affected.”
In his remarks, Senator Jibrin Barau (Kano North), described the motion as a wake-up call for health officials across the country to deploy early preventive measures.
His words, “I was thinking whether our health officials are doing everything possible to prevent the coming of this disease into the country.
“This motion is a wake-up call to our health officials to deploy preventive measures.
“We should find a way to send a message through this motion to make sure the proper thing is done to a safeguard the health of citizens and the nation,” the lawmaker advised.
While the lawmakers advised Nigerians to maintain good personal hygiene by constantly washing their hands with water and soap or through the use of liquid sanitizers, they also urged Nigerians with any reported cases of likely infection or with symptoms similar to those associated with Coronavirus to visit hospitals for urgent health check.
By: Nneka Amaechi-Nnadi, Abuja
