The Traffic

Reps Launch Deep Probe Into $18bn Refinery Repairs, Vow to Break Monopoly in Oil Sector

The House of Representatives Committee on Petroleum Resources (Downstream) has launched an in-depth investigation into the controversial $18 billion turnaround maintenance (TAM) of Nigeria’s four state-owned refineries, amid public outrage over their continued poor performance.

This comes on the heels of a similar move by the House Committee on Petroleum Resources (Midstream), raising serious questions over how such a colossal investment has failed to revive the country’s refining capacity.

Chairman of the Committee, Hon. Ikenga Imo Ugochinyere (PDP – Imo), expressed deep concern during a press briefing on Wednesday over reports that the Port Harcourt and Warri refineries—which only recently resumed operations—have already shut down. He emphasized the urgency to get to the root of the failed TAM projects, especially considering that the contractor involved was reputed for service excellence.

“The shutdown of these refineries after recent efforts to restart them is not only unacceptable but points to a deeper rot we must uncover,” Ugochinyere said.

To accelerate the probe and address wider challenges in the downstream sector, the committee has established multiple technical sub-committees. These task forces will investigate unresolved matters and strategic concerns threatening the viability of Nigeria’s petroleum downstream space.

Among the critical issues for investigation are:

The $18 billion spent on turnaround maintenance and the current state of the four refineries

Allegations of a potential monopoly in petroleum transportation and retailing by Dangote Refinery

Complaints from NNPC Retail staff over the OVH acquisition and related House-ordered re-investigation

The bureaucratic challenges preventing modular and local refineries from accessing crude oil feedstock

Strategies to incorporate artisanal refiners into the national refining framework

Proposed amendments to the Petroleum Industry Act (PIA) aimed at strengthening the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)

Ugochinyere stressed that the House is committed to delivering real reforms that ensure transparency, fairness, and competitiveness in the oil and gas sector.

“This initiative is aimed at addressing threats to the viability and sustainability of the downstream sector,” he said. “We must put an end to the cycle of inefficiency and mismanagement.”

As part of its broader legislative strategy, the House is also preparing amendments to the PIA to close loopholes and address emerging regulatory issues. Ugochinyere revealed that the Committee has rejected a petition seeking the dissolution of the NMDPRA, clarifying that under the current law, only the President has the constitutional authority to make such appointments or terminations.

“We cannot return to the days when public officials were dismissed on a whim,” he remarked. “However, anyone found guilty of corruption must face the law without exception.”

Representing Ideato South/Ideato North Federal Constituency in Imo State, Ugochinyere reaffirmed the House’s commitment to protecting national interests and preventing any form of monopoly in the petroleum industry.

“The 10th House will resist every attempt to corner Nigeria’s oil and gas resources into the hands of a few. This sector belongs to all Nigerians,” he concluded.

Reports from the sub-committees are expected in the coming weeks as the legislative arm ramps up efforts to restore accountability and efficiency in the country’s ailing oil sector.

By Haruna Yakubu Haruna