Nigerian Senate Summons Dangote Refinery, NIPCO Gas, and 13 Others to Account for use of N120 Billion CBN Fund

In a significant development highlighting accountability in Nigeria’s energy sector, the Nigerian Senate has summoned 15 companies, including prominent ones such as Dangote Oil Refinery and NIPCO Gas Limited, to a hearing. This crucial meeting, initiated by Senator Jarigbe Jarigbe, Chair of the Senate Committee on Gas, centers around the utilization of a substantial N120 billion fund provided by the Central Bank of Nigeria (CBN) under the Nigeria Gas Expansion Program (NGEP).

The invited companies, which also include NIPCO Plc, HYDE Energy Ltd, and Lee Engineering and Construction Company among others, have received varying amounts from this fund, ranging from N1 billion to N25 billion from CBN. 

They are now required to present detailed progress reports on their respective projects, including location and current status. This accountability measure seeks to ensure that the CBN funds are used effectively for the intended purpose of enhancing Nigeria’s gas sector.

This move by the Nigerian Senate comes against a backdrop of increased scrutiny on the management of the country’s energy resources, especially in the context of the rehabilitation of Nigeria’s four refineries. Recently, the Senate Committee probing the refineries’ rehabilitation had expressed frustration over the non-cooperation of senior officials from the Nigerian National Petroleum Corporation Limited (NNPCL) and other relevant agencies. 

Senator Isa Jibrin, chairing this committee, highlighted the staggering N12 trillion fund spent on refinery rehabilitation since 2010, despite none of the refineries being functional.

The committee’s dissatisfaction extends to the operational expenses incurred during this period, raising questions about the transparency and efficacy of the funds used. Senator Jibrin emphasized the committee’s resolve to demand refunds dismissals, and even criminal trials for those found complicit in mismanagement.