Fresh controversy has erupted around the Nigerian oil sector following allegations that the Nigerian National Petroleum Company Limited (NNPCL) failed to properly account for approximately $3.5 billion allocated for the rehabilitation of the country’s refineries, prompting renewed calls for a comprehensive investigation.
The allegations were raised by civil society organisations and transparency advocates who questioned the outcome of several refinery rehabilitation projects despite huge public spending over the years.
Reports indicate that the funds were reportedly earmarked for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries, which have remained largely inactive or underperforming despite repeated promises by government officials that operations would resume at full capacity.
The controversy intensified after NNPCL recently entered into a fresh agreement with Chinese firms to further rehabilitate and expand some of the affected refineries, a move critics described as troubling given previous spending on the same projects.
A coalition known as the Coalition for Oil Sector Reforms and Accountability has reportedly called on President Bola Ahmed Tinubu to order an independent probe into all refinery rehabilitation contracts awarded by NNPCL over the past decade.
The group also urged anti-corruption agencies, including the Economic and Financial Crimes Commission (EFCC), to investigate how billions of dollars were spent without visible improvements in refinery output.
According to the coalition, Nigerians deserve transparency regarding the management of public funds invested in critical national assets.
The continued allocation of funds for refinery repairs without corresponding results raises serious accountability concerns, the group reportedly stated.
The development comes amid increasing public frustration over Nigeria’s dependence on imported petroleum products despite being one of Africa’s largest crude oil producers.
The issue also follows earlier concerns raised by the Socio-Economic Rights and Accountability Project (SERAP), which previously accused NNPCL of failing to account for billions of naira and billions of dollars reportedly meant for refinery repairs and oil-related expenditures.
Former Vice President Atiku Abubakar had also criticised previous refinery rehabilitation projects, questioning the effectiveness of billions spent on facilities that remain unable to operate optimally.
Meanwhile, NNPCL has maintained that ongoing reforms within the oil and gas sector are aimed at improving Nigeria’s energy security and boosting local refining capacity.
The company has yet to officially respond to the latest allegations surrounding the reported $3.5 billion refinery rehabilitation funds.
The latest controversy is expected to intensify pressure on the Federal Government to conduct a transparent audit of refinery rehabilitation expenditures and provide clarity on the status of the country’s refineries.