The House of Representatives joint Committee on Midstream and Downstream has announced a thorough investigation into the alleged domestic production of substandard petroleum products, the non-availability of crude oil to domestic refineries, and other related matters.
The committee, led by Chairman Rep. Ikenga Imo Ugochinyere, aims to address critical issues affecting the petroleum industry in Nigeria.
Speaking at the opening of the investigation on Monday, Rep. Ugochinyere recalled that the House had adopted a motion on July 9, 2024, to carry out a legislative forensic investigation into the challenges facing the downstream and midstream petroleum sectors. The motion was driven by concerns over fuel queues, high costs of PMS, fuel stock availability, and issues related to distribution and subsidisation.
Following the motion’s adoption, the House mandated the Committees on Petroleum Resources Midstream and Downstream to conduct the investigation. Ugochinyere emphasised that the committee’s focus includes the resurgence of fuel queues, allegations of high PMS costs, unavailability of fuel stock for domestic refineries, disruption of PMS distribution, unfair subsidisation practices, racketeering, and favouritism in the Pro Forma Invoice System.
“We are firstly addressing allegations concerning the importation of substandard petroleum products and the non-availability of crude oil to domestic refineries,” said Ugochinyere. “These issues have raised serious concerns about the quality and safety of fuel in our market.”
The investigation will also scrutinise the integrity of testing processes for petroleum products, particularly examining the capacity and credibility of testing labs involved in the downstream and midstream value chains.
Additionally, the committee will investigate the indiscriminate issuance of licences and importation of refined petroleum products, the return of PMS price intervention, product availability from NNPC Retail, refinery rehabilitation delays, and activities at petrol depots.
The committee aims to address middlemen’s involvement in crude trading, license issuance practices, the availability of international standard laboratories, the influx of contaminated products, non-domestication of crude marketing profits, abuse of the PFI regime, and the use of international trading companies to resell fuel stock at high mark-up prices to local refineries.
Rep. Ugochinyere announced that both parties involved in current disputes, including Dangote Refinery, other refining companies, NMDPRA, marketers, and relevant stakeholders, should cease further allegations and counter-allegations pending the investigation’s conclusion.
“Letters of invitation will be dispatched today for submissions of relevant documents and appearances to key stakeholders, regulatory bodies, State Oil Company, Petroleum Products Refining Companies, IPMAN, PETROAN, independent oil producers, international oil companies, importers, marketers, depot owners, and other stakeholders too numerous to mention,” Ugochinyere stated.
