Fuel importation: Nigeria spent $36.371bn in 5 years – CBN

The Central Bank of Nigeria (CBN), has disclosed that the country spent a whooping sum of $119.409 billion on the importation of various commodities in the last five years. Of this sum, $36.371 billion was expended on the importation of petroleum products. “Data from the CBN shows that from 2013 to 2017, a total of foreign exchange committed to imports in the country stood at $119.409 billion, while the total foreign exchange committed to imports in the oil sector stood at $36.371billion, representing 13.5 per cent of all imports made by the country,” CBN’s Director (Research), Mr. Ganiyu Amao, told the House of Representatives Ad-hoc panel investigating the status of the nation’s four refineries yesterday.

The Garba Datti-led panel, also mandated by the House to ascertain the country’s financial commitment to regular Turn Around Maintenance (TAM) of the refineries, has however given the Nigeria National Petroleum Corporation (NNPC), 24 hours to provide relevant details on installed capacity of the refineries, volume of crude supply and resultant outputs, as well as all information on the TAM of the refineries.

The panel regretted that effort by the apex bank to control pressure on the naira was usually hampered by the excess outflow of foreign exchange.

“It greatly exerts serious pressure on our external reserve, and depreciates the value of our local currency,” Datti said, adding that the CBN favours any that “will compel International Oil Companies (IOCs) to refine at least half of the crude that they produce for domestic consumption.

“Only a few organisations and individuals have complied with the committee’s request for documents and memoranda, as many are bent on frustrating the investigation in this regard. The committee derives its authority to conduct this probe from the resolution referred to it in line with the provisions of the constitution,” the lawmaker said, assuring that it “will compel compliance where necessary.”

Earlier, Speaker Yakubu Dogara, had while declaring the public hearing open, explained that the probe was necessitated by the need to ensure due process in government business. He recalled that the committee was given the mandate to ascertain the viability of continuing investment of public funds on the nation’s refineries, and allocation of 445,000 bpd of crude utilisation for the same purpose, and to determine the current utilisation level of Warri, Kaduna and Port Harcourt refineries. Dogara further disclosed that the committee was also expected to “carry out a comprehensive investigation on the Turn Around Maintenance (TAM) carried out to date on the refineries, and identify the private and corporate individuals that have refused to utilise the license (regular and Modular), the readiness and status of all current holders and report back within 90 days for further legislative action.”

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