The Nigerian Senate has initiated a thorough investigation into the ongoing importation of substandard diesel and other hazardous petroleum products into the country.
On Wednesday, an ad-hoc committee was formed, led by Senate Leader Opeyemi Bamidele, alongside 14 other senators, to identify those responsible for this illicit practice. The committee has been given three weeks to submit its findings.
This development follows a motion by Asuquo Ekpenyong, Chairman of the Senate Committee on Niger Delta Development Commission, highlighting the urgent need to address the importation of hazardous petroleum products.
Ekpenyong revealed that recent reports indicated 12 diesel cargoes, carrying a total of 660 kilo-tonnes, were exported by refineries to offshore Lomé, Togo, for further distribution to West African markets, predominantly Nigeria.
Senate President Godswill Akpabio, during Tuesday’s plenary session, expressed concerns over the dangers posed by these substandard products, emphasizing the necessity of an immediate investigation.
Ekpenyong pointed out that the quality of the imported diesel fell below Nigerian standards in terms of flash and sulfur levels. He warned that this practice not only jeopardizes public health but also violates World Trade Organisation (WTO) rules against dumping.
Ekpenyong further explained that the imported diesel is priced below fair market value, constituting dumping under WTO rules. These rules permit countries to implement protective measures such as anti-dumping duties and import restrictions to safeguard their local industries.
Despite recent revisions to diesel importation standards by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in line with the Petroleum Industry Act, 2021, enforcement has been inadequate.
Ekpenyong stressed the benefits of banning diesel importation for the Nigerian Petroleum Industry and the nation’s economy, urging the NMDPRA to revoke import licenses to address these concerns.
He cautioned that continued importation of substandard diesel could force local producers to halt the commissioning of gasoline units and shut down refineries until regulatory conditions improve.
Other notable members of the ad-hoc committee include Senator Adams Oshiomhole (Edo North), Senator Abdul Ningi (Bauchi Central), and Senator Osita Izunazo (Imo West), among others.
