Nigeria Spends N100bn on the Rehabiliitation of Refineries in 2021
The Nigerian National Petroleum Corporation (NNPC) revealed on Sunday, 30th of January, 2022 that 100 billion naira was spent on rehabilitating refineries in Nigeria in 2021, and monthly expenditure was made on revamping the refineries.
The information was disclosed in its Federation Account Allocation Committee (FAAC) report on the utilization of funding from January to December in the year 2021.
Refineries in Nigeria have been under NNPC’s management, and although no particular one was mentioned, it has been confirmed that facilities at the Port Harcourt Refining Company have been undergoing some rehabilitation. The NNPC also manages the Warri Refining and Petrochemical Company and the Kaduna Refining and Petrochemical Company.
The NNPC in its funding performance report, revealed that for the period between January and December, 2021 N8.33 billion was expended monthly on the rehabilitation of the refineries in Nigeria.
The Federal Government has made effort to ensure Nigeria’s refineries are up and running, in order to cut costs on importation and subsidy, as Nigeria imports most of its refined petroleum products.
The NNPC has been the sole importer of petrol to the country for over 4 years.
The Federal Government has reportedly processed $98million and N17.2 billion to cover part of the funding required for the rehabilitation of the Port Harcourt Refining Company.
The government had made a $194m initial payment for the rehabilitation by Techimont SPA of Italy.
Currently, the NNPC has four idle refiners, two of them are located in Port Hacourt (PHRC), one in Warri and one in Kaduna (KRPC).
The price for engineering, constructions, installation, procurement and commissioning contracts according to the report is at a lump sum of $1.397 billion, and the provisional sum is $162m, which brings the total cost of the project to $1.559 billion, as was approved by the Federal Executive Council.
The contract for the EPCIC of the Port Harcourt refinery was approved on the 17th of March, 2021 and the awarding of the EPCIC contract of the PHRC was approved by the Federal Executive Council in the month of March, and the contract was signed on the 6th of April, 2021.
The additional funds have been reportedly processed to facilitate the plant’s continued rehabilitation.
$1.48 billion was approved by the Federal Executive Council in August, 2021 for the rehabilitation of the Warri and Kaduna refineries.
This information was released by Chief Timipre Sylva, the Minister of State for Petroleum Resources, at an FEC meeting in Abuja.
She stated that Messers Saipem SPA and Saipem Contracting Limited would be awarded the contracts to rehabilitate the Warri and Kaduna refineries at a total sum of $1.484 billion, and the rehabiliitation. She said the renovation would be done in 3 phases.