Nigeria’s House of Representatives has launched an investigation into the persistent failure of the country’s state-owned oil refineries, despite claims that nearly $18bn has been spent on their rehabilitation over the past two decades.
The decision followed a motion moved on Thursday by Lagos lawmaker Oluwaseun Whinghan during a plenary session presided over by Deputy Speaker Benjamin Kalu. The House directed its committees on Petroleum Resources (Upstream, Downstream and Midstream), Gas Resources and Public Assets to probe how billions of dollars allocated to the refineries in Port Harcourt, Warri and Kaduna were used — and to report back within four weeks.
Nigeria’s four government-owned refineries — two in Port Harcourt and one each in Warri and Kaduna — have been dormant for years, plagued by mismanagement, neglect and sabotage. The plants, managed by the Nigerian National Petroleum Company Limited (NNPCL), have repeatedly failed to resume production despite multiple rounds of “turnaround maintenance” projects.
Whinghan said the House was “deeply concerned” that, despite two decades of promises and investments estimated at $18bn, there had been no measurable results.
“The House is worried over the recent public statements by Nigeria’s foremost industrialist, Aliko Dangote, and former President Olusegun Obasanjo, expressing doubts about the viability of these refineries and describing the multi-billion-dollar investments as futile,” Whinghan said. “These revelations have sparked widespread public concern and outrage over potential mismanagement.”
He recalled that in 2007, during Obasanjo’s administration, Dangote and other private investors acquired the refineries, only for the sale to be reversed by President Umaru Yar’Adua, who opted for publicly funded rehabilitation instead — a decision that, Whinghan argued, has produced “no significant operational improvements.”
The lawmaker cited comments by NNPCL’s Group Chief Executive Officer, Bayo Ojulari, who admitted that the refineries remain non-functional despite the heavy expenditure and hinted that a sale of the assets may be considered. The remarks, Whinghan said, raised “critical questions about fiscal responsibility, strategic asset management, and the long-term implications for Nigeria’s energy security.”
He warned that the continuous failure of the refineries represented not only a “gross misuse of public funds” but also a “betrayal of public trust,” especially in the wake of the government’s removal of fuel subsidies, which has deepened economic hardship for millions of Nigerians.
“We are convinced that a comprehensive, transparent, and time-bound investigation is essential,” he added, “to ascertain the current operational and structural status of the refineries, examine the utilisation of all allocated funds, and identify any mismanagement or corrupt practices.”
The House resolution mandates the joint committees to scrutinise all funds appropriated and disbursed for refinery rehabilitation between 2010 and 2024, determine the true state of the facilities, and identify any agencies or individuals responsible for financial or administrative infractions.
Nigeria, Africa’s largest crude oil producer, continues to depend on imported petroleum products to meet domestic demand, despite decades of pledges to revive its refining capacity. Recent private investments — including Aliko Dangote’s 650,000-barrel-per-day refinery in Lagos — have further exposed the federal government’s inability to restore its ageing state plants to productivity.
