The Central Bank of Nigeria (CBN) has disclosed that the Federal Government spent $36.3 billion on the importation of petroleum products between 2013 and 2017.
CBN’s Director of Research, Ganiyu Amao, disclosed this Monday at the investigative hearing organised by the House of Representatives’ ad hoc committee investigating the state of the nation’s refineries, their turnaround maintenance (TAM) to date and regular/modular licensed refineries.
Amao said the fuel importation figure was part of $119.41 billion the Federal Government spent on importation of commodities during the period, explaining that efforts by the bank to intervene in foreign exchange market were usually curtailed by excessive outflow of foreign exchange.
“Data from CBN shows that from 2013 to 2017, total foreign exchange committed to imports in the country stood at $119.41 billion, while total foreign exchange committed to imports in oil sector stood at $36.37 billion.
“This represents 13.5 per cent of all imports made by the country. It greatly exerts serious pressure on our external reserve and depreciates the value of our local currency,” he said.
According to him, do-mestic consumption of fuel rose from 4.5 million metric tonnes to 23.9 million metric tonnes in 2013 and dropped to 2.6 million metric tonnes in 2016. He said that the CBN favoured a policy that compelled International Oil Companies (IOCs) to refine at least half of the crude that they produced. He informed that what is required of the four refineries is not TAM, but “a total overhaul.”
The CBN official explained that even if the four refineries are working at full capacity, he doubts if they will be able to satisfy local consumption, adding that: “To completely rid Nigeria of its economic woes, the proposed modular refineries must come under operations.
Because apart from Dangote who is building his refinery, other licensed holders are not ready to do anything. There is need to revalidate licences of holders, including those of modular refineries.”
However, the committee chairman asked Amao to suspend his submission until he supplies the information needed by the committee.
Meanwhile, the chairman of the ad hoc committee, Hon. Garba Datti Mohammed (APC, Kaduna), has lamented that most individuals, groups and ministries, departments and agencies (MDAs) were withholding useful information with the intent of “frustrating the committee”.
Dismissing the chief operating officer (COO) of the Nigerian National Petroleum Corporation (NNPC), Anibor Kragha, the committee chairman said: “I think the way you treat us here is with maximum contempt.
Since you don’t take this parliament serious, we will not ask further questions until all the information we are looking for is provided by you.”
Earlier, Kragha reading from the memo it presented to the ad hoc committee explained that the NNPC was not carrying out a TAM of the four refineries as held by the legislators but it was instead doing “a comprehensive rehabilitation.” Both representatives of NNPC and CBN were therefore asked to reappear before the committee on Tuesday with all the relevant information.
While declaring open the public hearing, Speaker Yakubu Dogara restated that they were bent on ensuring that due process is followed in governance business, and will continue to insist that public investment be managed professionally and profitably.
Dogara, who was represented by the deputy minority whip, Hon. Chukwuka Onyeama, said the investigation is aimed at determining whether it is beneficial for the government to continue to pump in public funds into refineries and still have to allocate crude oil for the same purpose of refining, as well as the status of all the refineries, their turnaround maintenance and ascertain why holders of license have refused to utilise them.