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Nigeria’s $35m modular refinery scandal deepens as lawmakers launch probe

Simon Osuji by Simon Osuji
October 16, 2025
in Business
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Nigeria’s $35m modular refinery scandal deepens as lawmakers launch probe
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The project, intended as a 2,000-barrel-per-day modular refinery, was initiated by Atlantic International Refinery and Petrochemical Limited in partnership with the Nigerian Content Development and Monitoring Board (NCDMB) to enhance local refining capacity, create jobs, and deepen indigenous participation in the petroleum industry.

Despite an initial $35 million (₦50 billion) investment made in 2020, the refinery has remained dormant for four years, with no visible progress on the ground.

Raising the alarm during Wednesday’s plenary, Hon. Billy Osawaru, representing Orhionmwon/Uhunmwode Federal Constituency in Edo State, described the situation as “a monumental economic sabotage.”

“Despite this huge investment, enough to fund key components of the national budget, nothing is on the ground to show that any progress has been made,” Osawaru told lawmakers.

Speaker of the Nigerian House of Representatives, Rt Hon. Abbas Tajudeen, PhD. [X, formerly Twitter/@HouseNGR]

However, nearly a year later, “nothing has been heard about this profound national waste,” he said.

Osawaru warned that the continued inaction surrounding the project “raises significant questions about the management of public funds and the effectiveness of oversight mechanisms in Nigeria.”

The motion, titled “Need to Investigate the Abandoned $35 Million Modular Refinery Project in Brass, Bayelsa State,” received overwhelming support when Deputy Speaker Benjamin Kalu put it to a voice vote.

Following the resolution, the House referred the matter to its Committees on Petroleum Resources (Downstream and Midstream) for further legislative action. The committees have four weeks to submit their findings.

Across Africa, modular refineries have been promoted as a quicker, cost-effective solution to local refining shortages.

However, the Brass refinery’s fate now serves as a cautionary tale on how governance lapses and corruption can stall industrial progress, even amid the continent’s renewed push for energy self-sufficiency.

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