The Nigerian National Petroleum Company Limited reported it spent N100bn on refineries’ rehabilitation in 2021 and that funds were put into updating the facilities on a monthly basis last year.
It was disclosed in a report on the funding performance of the oil firm from January to December 2021.
Although no refinery was cited in the report, Nigeria’s refineries had been under the management of NNPC, as the rehabilitation of one of the facilities, Port Harcourt Refining Company, had been ongoing.
The other refineries under the NNPC’s supervision include the Kaduna Refining and Petrochemical Company, as well as the Warri Refining and Petrochemical Company.
In the NNPC’s latest funding performance report, the firm stated that N8.33bn was spent monthly for a period of 12 months beginning from January to December 2021 on refinery rehabilitation.
In the same vein, the Federal Government has been making moves to get the country’s refineries back on stream, as Nigeria currently imports bulk of its refined petroleum products.
This has resulted in immense subsidy spendings by the NNPC, the sole importer of petrol into Nigeria for more than four years and counting.
It was reported that the Federal Government had processed $98m and N17.2bn as part payments for the ongoing rehabilitation of the Port Harcourt Refining Company.
In August last year, the Federal Executive Council approved the sum of $1.48bn for the rehabilitation of both Warri and Kaduna refineries.
The Minister of State for Petroleum Resources, Chief Timipre Sylva, disclosed this at the end of one of the weekly FEC meetings held in Abuja.
Sylva had clarified that the rehabilitation of Warri and Kaduna refineries would be awarded to Messers Saipem SPA and Saipem Contracting Limited at the combined total sum of $1.484bn and would be rehabilitated in three phases of 21, 23 and 33 months.