The House of Representatives joint committee on petroleum resources (downstream and midstream) has launched a probe into claims that local refineries, including the Dangote Petroleum Refinery, produce inferior products.
The committee said it is inviting all parties, including Dangote Refinery, to defend themselves.
At the inaugural sitting on Monday, Ikenga Ugochinyere, chairman of the petroleum resources downstream committee, said a “thorough and transparent” probe would be carried out on the claims, including detailed laboratory investigations at all local refineries, marketers and importers facilities, and regulatory agencies.
The committee said it is also investigating the allegations that the international oil companies (IOCs) in Nigeria are frustrating the Dangote refinery.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had said local refineries, including the Dangote refinery, were producing inferior products compared to those imported, and also accused Dangote of monopoly.
CEO of Dangote Group, Aliko Dangote, however, denied the allegations.
Ugochinyere said the committee would further investigate the “indiscriminate” issuance of licences and importation of refined petroleum products, return of PMS price intervention, allegation of product unavailability to marketers from NNPC retail, and endless shifting of timelines for refinery rehabilitation and the nefarious activities at petrol depots, among others.
He said the panels will also probe the alleged anomalies in the importation and distribution of PMS by the state oil company, the economic viability of the alleged sale of petroleum products below fair market value and its impact on downstream and local refineries and revenue generation as well as the source of funds for such price interventions, quantity imported, the amount spent and why the products are still high in the retailing market.
In addition, the lawmaker said the committee will investigate the alleged failure of some of the regulators to enforce compliance on standards, the lack of support to local crude refiners, and the issuance of import licences, despite local production.
Ugochinyere said the probe will start with addressing allegations concerning the importation of substandard petroleum products and the non-availability of crude oil to domestic refineries, which has raised serious concerns about the quality and safety of fuel in our market.
He said the committee had resolved that parties in the raging argument — Dangote refinery, other refining companies, NMDPRA, marketers and relevant stakeholders should cease further allegations and counter-allegations pending the conclusion and outcome of the investigation.
