The House of Representatives Joint Committee on Petroleum Resources (Downstream and Midstream) has initiated an investigation into claims that local refineries, including the Dangote Petroleum Refinery, produce substandard products. The committee is also examining allegations that international oil companies (IOCs) in Nigeria are undermining the survival of the Dangote refinery.
At the committee’s inaugural session on Monday, Ikenga Ugochinyere, chair of the Petroleum Resources Downstream Committee, emphasized that a thorough and transparent investigation would be conducted. This includes detailed laboratory inspections at all local refineries, marketers’ and importers’ facilities, and regulatory agencies.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Dangote refinery have been in a dispute. On July 18, Farouk Ahmed, CEO of NMDPRA, claimed that local refineries, including Dangote, were producing inferior products compared to imports and accused Dangote of holding a monopoly. Aliko Dangote, CEO of the Dangote Group, denied these claims.
Ugochinyere stated that the committee would also investigate the “indiscriminate” issuance of licenses, the importation of refined petroleum products, the return of PMS price intervention, product unavailability to marketers from NNPC retail, delays in refinery rehabilitation, and illicit activities at petrol depots.
The committee will conduct a legislative forensic investigation into the presence of middlemen in crude trading, the lack of international standard laboratories to check adulterated products, the influx of contaminated products, and the alleged non-domestication of profits from crude marketing sales in local banks. They will also examine abuses of the PFI regime, the importation of products already produced in Nigeria, and the use of international trading companies to resell fuel stock to local refineries at high mark-up prices.
Furthermore, the committee will probe allegations of importing substandard products and high-sulphur diesel into Nigeria, the production of substandard diesel and other petroleum products by some domestic producers, anomalies in the importation and distribution of PMS by the state oil company, and the economic impact of selling petroleum products below fair market value.
Ugochinyere announced that the investigation would begin with allegations regarding the importation of substandard petroleum products and the non-availability of crude oil to domestic refineries. He emphasized that the probe would scrutinize the integrity of the testing processes for petroleum products in Nigeria, focusing on the capacity and credibility of all testing labs involved in the downstream and midstream value chain.
To ensure a comprehensive investigation, the committee will conduct detailed laboratory investigations at all local refineries, marketers’ and importers’ facilities, regulatory agencies, state oil companies, and other sector players. They will collect samples transparently and in accordance with global best practices, with testing done independently and jointly by the committee and stakeholders.
Ugochinyere said the committee would establish zonal interaction teams to quickly engage with stakeholders nationwide, taking samples from their facilities for immediate analysis. Invitations for document submissions and appearances will be sent to key stakeholders, regulatory bodies, state oil companies, petroleum product refining companies, IPMAN, PETROAN, independent oil producers, IOCs, importers, marketers, and depot owners.
The committee is committed to transparency, thoroughness, and accountability throughout this process to identify and resolve the underlying issues in Nigeria’s petroleum sector. Ugochinyere concluded by stating that all parties involved in the current disputes—Dangote refinery, other refining companies, NMDPRA, marketers, and relevant stakeholders—should cease further allegations and counter-allegations until the investigation is completed.
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