Port-Harcourt Refinery
The House of Representatives Committee on Petroleum Resources (Downstream) has resolved to launch a comprehensive investigation into the state of Nigeria’s refinery rehabilitation projects.
This resolution followed a special session and after reviewing numerous petitions and complaints from the general public over the matter.
Chairman of the committee, Hon. Ikenga Ugochinyere, who stated this in a statement on Wednesday, disclosed that these petitions include serious allegations of fraud, mismanagement, and misappropriation of public funds committed to the rehabilitation of refineries.
He explained that the goal of the impending investigation was to uncover why, despite heavy financial investments, the refinery remains non-functional, shut down, and surrounded by confusion and controversy.
According to Hon Ugochinyere, the committee was particularly concerned about the apparent lack of accountability from those assigned to monitor the progress—ranging from refinery managers to NNPC officials—who provided regular updates and site visits.
He said, “The House Committee, following a special session and after reviewing numerous petitions and complaints from the general public, has resolved to launch a comprehensive investigation into the state of Nigeria’s refinery rehabilitation projects. The committee noted that these petitions include serious allegations of fraud, mismanagement, and possible misappropriation of public funds committed to the rehabilitation of refineries.
“While acknowledging that relevant security and investigative agencies may already be handling aspects of the matter, its legislative responsibility to conduct a fact-finding exercise on behalf of the people. The goal is to uncover why, despite heavy financial investments, the refinery remains non-functional, shut down, and surrounded by confusion and controversy.
The refineries are public assets belonging to the federation—jointly owned by both federal and state governments—and that it is the duty of the National Assembly to provide the Nigerian people with clear answers. Citizens are rightly asking: What happened? Was the public deceived? Was the project sabotaged?
At the core of the committee’s inquiry is whether the refinery rehabilitation was executed according to the terms and technical specifications outlined in the contracts. If so, why is the facility not operational? If not, did the contractors fail? Were there consequences for non-performance? Was there evidence of misappropriation, shady dealings, or a breakdown in oversight?
“The committee is particularly concerned about the apparent lack of accountability from those assigned to monitor the progress—ranging from refinery managers to NNPC officials—who provided regular updates and site visits. At what point did these stakeholders realize the project was not viable, and why was funding continued? Was this a case of a failed vision from the start?
Furthermore, the committee has received troubling allegations that by-products from the refinery were either misappropriated, undersold, or not properly accounted for. These include claims that some of the materials were used for image laundering and public relations, rather than being reinvested into the sector.
In light of all these concerns—ranging from the shutdown itself, the failure of the project, the suspected misuse of funds, and the questionable handling of by-products—the committee has resolved to conduct a detailed investigation. This will include identifying those responsible and advising Parliament on the appropriate actions to take, ensuring transparency, accountability, and better management of national resources moving forward.”
[3:49 PM, 7/23/2025] Ikenga Ugochinyere: Call for dissolution of Nmdpra board,removal of Farouk baseless, in violation of pia – Reps Downstream committee
The House of Representatives downstream committee have dismissed the call for dissolution of the NMDPRA Nigeria Midstream Downstream Regulatory Authority and removal of its Chief Executive Alhaji Ahmed Farouk as basesles, in violation of Pia and capable of destroying the gains that comes with leadership stability that have helped in policy consistency, investor friendly process etc that is behind the gains presently been seen in the downstream sector.
The Reps Downstream Committee at its special committee meeting session presided over by its Chairman Ikenga Imo Ugochinyere with members in attendance unanimously resolved to dismiss the calls as in clear violation of the pia which under section 41 have made robust provision for tenure certainty to help create stability in the sector and lawmakers who made the law with the intention to see stability and growth in the sector can’t be seen supporting any thing that can rubbish the provisions of the wonderful PIA 2021. The committee chairman said they dismissed the call on the grounds that the National Assembly, made the PIA and put in clauses for obtaining tenure security to help inspire investors’ confidence, policy consistency, ensure stability for a specific period of time after which the President reserves the right to extend the appointment or allow the occupant exit after completing the first term. So, the committee, after looking at some of the complains and issues, did not see any reason to warrant the committee supporting such call, due to the fact that none of the issues raised are rooted in the effectiveness of the regulatory agencies but about desire for change of guard.
The committee believes strongly that in the last few years, since the coming of PIA, there have been increased progress in the downstream and upstream sector, especially restoration of investors’ confidence and fresh inflow of investment funds into the downstream sector, running into billion of dollars.
We made the PIA for a reason, and we cannot join in asking for the violation of the PIA, thereby destroying the decades of work on the PIA.
The Parliament worked so hard to create this magnificent legislation. The building of investor’s confidence, building of clarity, building of transparency, building of processes are key gains we are seeing today. The committee is not saying that investigating agency should not diligently carry out it’s function or prosecute any person found to have breached the law but the committee is completely against any idea that the PIA provisions can be dustbined and it’s provision ignored and that a regulatory body leader can be removed without due process and that once that culture is back,then it will send a wrong signal to the international committee of investors in the petroleum sectors to now feel that it is risky investing in a country where respect to the law can’t be gurranteed.
So on that ground the committee is dismissing those calls as not being in line with relevant provisions of the PIA which has physically made provisions for tenure duration and also the allegations about the budget of the agency are ridiculous because some of those allegations were way above the entire capitals provision in the budget, So if an amount that is alleged to have been misappropriated is above the budget capital provision, how could you have said someone stole what was not even exiting?
“More importantly, the agency, especially the NMDPRA, is running at a deficit, finding it difficult to have resources to pay salaries and have not even done recruitment in the last 6-7 years because of the financial challenges and difficulties they are facing. More importantly, since the advent of the PIA, the two regulatory bodies, which is the NMDPRA and nuprc have so much put in measures that have reformed and carried out the regulatory intention of the makers of the PIA in upstream and downstream . The investment inflow since the coming of the two regulatory bodies, the NMDPRA and the NUPRC, is almost over $20 billion.
