ADC demands full audit of refineries before proposed sale, questions $2.8bn expenditure

The African Democratic Congress (ADC) has called for a comprehensive forensic audit of Nigeria’s state-owned refineries before the federal government proceeds with any planned sale, raising serious concerns over transparency, accountability, and policy inconsistency.

In a strongly worded statement issued on Thursday by the party’s Interim National Publicity Secretary, Bolaji Abdullahi, the ADC questioned whether the administration of President Bola Tinubu had misled Nigerians, following recent comments from the leadership of the Nigerian National Petroleum Company Limited (NNPCL) suggesting that the refineries may be sold despite billions of dollars spent on their rehabilitation.

“The ADC believes that before any conversation about privatisation can proceed, there must be a comprehensive forensic audit of all funds allocated to refinery rehabilitation from 2010 to date,” the statement read.

The call comes in the wake of remarks made by NNPCL’s new Group Chief Executive Officer, Bayo Ojulari, during a recent interview at the 9th OPEC Seminar in Vienna, Austria. Ojulari indicated that “all options are on the table” concerning the future of the refineries, including outright sale.

His comments follow years of failed attempts to revive the refineries, despite the approval of $2.98 billion under the administration of former President Muhammadu Buhari. In March 2021, the Federal Executive Council approved $1.5 billion for the rehabilitation of the Port Harcourt Refinery. Later in August 2021, an additional $1.48 billion was approved for the Warri and Kaduna refineries.

However, despite these investments, all three refineries remain largely non-functional. The Port Harcourt refinery reportedly resumed operations briefly before shutting down again, Warri suffered a similar fate, while Kaduna refinery has remained dormant throughout.

The ADC described this sequence of events as emblematic of systemic waste, mismanagement, and lack of oversight.

“It is curious that the same government which recently claimed the refineries were operational is now considering selling them off. This raises questions about the real status of these assets and the integrity of information previously shared with Nigerians,” the statement said.

The party further warned that selling off national assets under such opaque circumstances could open the door to corruption and cronyism.

“Without a full, independent audit, financial, technical, and structural, any attempt to privatise these refineries should be considered not just illegitimate but criminal,” the ADC asserted.

The party also called for a third-party technical assessment to verify the current state and potential of the refineries, and urged the government to present the audit findings publicly through a legislative hearing. It demanded the involvement of civil society, energy economists, and anti-corruption agencies in the process.

“It is not enough to cite the failure of rehabilitation as justification for a quick sale. There must be public accountability for the billions spent,” the ADC added.

Referring to comments made by Nigerian billionaire Aliko Dangote, who recently cast doubt on the viability of the government-owned refineries, the ADC said his concerns were valid given the deteriorated state of the infrastructure and hollowed-out operations.

“Even Africa’s foremost industrialist has expressed doubts about the functionality of these assets. We must now ask: what exactly is being sold, and why now?”

The party warned that continued reliance on imported refined products despite massive rehabilitation spending points to a deeper crisis in the sector.

“There is no verifiable increase in refining capacity, no observable cost efficiency, and no fuel security benefit accruing to Nigerians. What we see instead is a system that has become a black hole for public funds,” the statement read.

The ADC concluded by stating that in any accountable democracy, such levels of public spending followed by a quiet pivot to asset disposal would lead to prosecutions.

“In other climes, those responsible for this level of fiscal mismanagement would face serious judicial inquiry. Nigeria must not remain an exception.”

The party urged the federal government to halt any further discussions of refinery sales until a full reckoning of past investments and policy failures is presented to the Nigerian people.

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