The House of Representatives joint Committee on Midstream and Downstream investigating alleged domestic production of substandard petroleum products, non-availability of crude oil to domestic refineries and other related matters has promised to carry out a thorough investigation by inviting all stakeholders to get to the root of the burning issue.
Chairman of the joint Committee, Rep. Ikenga Imo Ugochinyere, stated this at the opening of the investigation on Monday.
He recalled that the House had at the plenary on July 9 2024 , adopted a motion on, “Urgent need to carry out a legislative forensic investigation into the challenges affecting the downstream and midstream petroleum sectors in Nigeria and other related matters to find out a lasting solution to all challenges”.
He noted that, after adopting the motion, the House had subsequently mandated the Committees on Petroleum Resources Midstream and Downstream to carry out a legislative forensic investigation into the resurgence of fuel queues in petrol stations, allegations of high cost of PMS, unavailability of fuel stock for downstream domestic refineries, disruption of distribution of PMS products, unfair subsidization of PMS and other petroleum products, racketeering and favouritism in the Pro Forma Invoice System regime.
He added that the committee had officially commenced the comprehensive forensic legislative investigation into several critical issues that threaten the stability and trust in the petroleum industry.
Ugochinyere said, “We are firstly 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.
“Additionally, we are going to take a closer look at the integrity of the testing processes for petroleum products in the country, particularly focusing on the capacity and credibility of all the testing labs of all stakeholders in the downstream midstream value chain, local middlemen and the laboratories they employ”.
The lawmaker further stated that, the committee was also mandated to investigate the “indiscriminate issuance of licences and importation of refined petroleum products, alleged return of PMS price intervention, allegation of product unavailability to marketers from NNPC Retail, endless shifting of timelines for refinery rehabilitation and the nefarious activities at petrol depots.”
He said the committee would also conduct a legislative forensic investigation into the presence of middlemen in crude trading, indiscriminate issuance of licences, alleged unavailability of International standard laboratories to check adulterated products, influx of contaminated products into the country, the allegation of non-domestication of profits realized from crude marketing sales in local banks, abuse of the PFI regime, importation of products already being produced in Nigeria and use of international trading companies to resell fuel stock to local refineries at high mark up prices.
“So in view of the above, the joint committee resolved that both parties in the raging argument; Dangote Refinery, other refining companies, NMDPRA, marketers and relevant stakeholders should henceforth cease further allegations and counter- allegations pending the conclusion and outcome of the investigation.
“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 (IOCs), importers, marketers, depot owners and Other stakeholders too numerous to mention”.(Daily Trust)
