The House of Representatives Committee on Petroleum Resources (Downstream) has launched a comprehensive investigation into the status of Nigeria’s multi-billion dollar refinery rehabilitation projects, following the unexpected shutdown of the Port Harcourt refinery barely months after resuming operations.
The refinery, which underwent extensive turnaround maintenance costing millions of dollars, is now non-operational. The development has raised fresh concerns over transparency, accountability, and the effectiveness of the rehabilitation efforts spearheaded by the Nigerian National Petroleum Company (NNPC) Limited.
Speaking at a media briefing on Wednesday, Committee Chairman Hon. Imo Ugochinyere said the probe was prompted by a special session of the committee, during which numerous public petitions were reviewed. These petitions, he said, contained serious allegations of fraud, mismanagement, and misappropriation of public funds committed to refinery projects across the country.
“The House Committee, after reviewing numerous complaints from the general public, has resolved to investigate the state of Nigeria’s refinery rehabilitation projects,” Ugochinyere said.
“These petitions include serious allegations of fraud, mismanagement, and possible misappropriation of public funds. Despite the huge sums disbursed, our refineries remain non-functional, shut down, and surrounded by confusion and controversy.”
The Economic and Financial Crimes Commission (EFCC) is reportedly already probing the disbursement of $1.5 billion for the Port Harcourt refinery, $740 million for Kaduna, and $657 million for Warri.
Ugochinyere said the committee’s fact-finding mission was necessary to determine whether the refinery rehabilitation contracts were executed in line with approved technical specifications and project terms.
“If the contracts were executed properly, why is the facility not operational? If not, did the contractors fail? Were there consequences for non-performance? Was there evidence of misappropriation or breakdowns in oversight?”
The committee also expressed concern over the lack of accountability from refinery managers and NNPC officials responsible for monitoring the projects.
“These are public assets jointly owned by the federal and state governments. The Nigerian people deserve answers. Was the public deceived? Was this project sabotaged?”
In addition to the refinery probe, the committee is also investigating the challenges facing modular and local refineries in accessing crude oil. Ugochinyere questioned why domestic operators are forced to travel to Switzerland to negotiate crude purchases, despite sourcing the product locally.
He revealed that the committee had received numerous petitions on this issue and is working to develop a sustainable framework for crude allocation that prioritizes domestic refining capacity.
The lawmakers also resolved to revisit the controversial acquisition of OVH Energy by NNPC Retail, following unresolved grievances raised by staff and the rejection of a prior investigative report. The committee has now been mandated to re-examine the deal.
Ugochinyere further disclosed that the committee will propose amendments to the Petroleum Industry Act (PIA) to address emerging gaps in regulation and governance. These amendments aim to strengthen the roles of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and ensure improved oversight.
He confirmed that the committee had dismissed a petition calling for the dissolution of NMDPRA, noting that only the President holds such constitutional authority under the PIA.
“We are not shielding anyone. Anyone found guilty of mismanagement or corruption will face the full force of the law,” Ugochinyere declared.
The House has also resolved to investigate the current state of fuel importation, conflicting narratives about support for local refineries, and the potential creation of monopolies within the oil sector.
To drive industry reform, Ugochinyere announced that the House would inaugurate the first annual Downstream Petroleum Week on October 2, 2025 an initiative aimed at addressing sector challenges and promoting policy innovation.
All relevant subcommittees, he said, have been directed to expedite their investigations and provide timely resolutions to critical issues affecting the viability and resilience of Nigeria’s downstream petroleum sector.
