The Nigeria Senate has commenced a comprehensive probe into the petroleum sector, focusing on major industry stakeholders, including the Nigeria National Petroleum Company Limited (NNPCL), Dangote Group, and various international and local oil companies. The probe, which began on Thursday, also includes the Ministries of Finance, Trade and Investment, the Central Bank of Nigeria (CBN), Nigeria Customs Service, Nigeria Navy, and numerous other regulatory and industry bodies.
The legislative inquiry follows allegations of economic sabotage within the petroleum industry, including recent accusations of the importation of toxic petroleum products. An ad-hoc committee led by Senate Leader, Senator Opeyemi Bamidele, has been tasked with investigating the pre-shipment and pre-discharge standard test parameters used by the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) to identify any loopholes that may have allowed the entry of toxic cargoes into the country.
“Our investigation seeks to identify and hold accountable parties involved in the importation and distribution of adulterated petroleum products. This includes suppliers, importers, regulatory bodies, and any other entities that may have contributed to this serious lapse in quality control,” stated Senator Bamidele.
The committee aims to:
- Review Regulatory Frameworks: Conduct a thorough review of current regulatory frameworks and procedures to identify deficiencies and recommend necessary reforms to prevent future occurrences of importing substandard products.
- Ensure Compliance: Determine the level of compliance of the NNPCL’s Direct Sale and Direct Purchase (DSP) arrangements with the Petroleum Industry Act’s provisions, focusing on transparency and accountability.
- Investigate Quality Control Failures: Investigate how various institutions failed to conduct proper quality sampling and auditing during the importation and distribution of petroleum products.
- Engage Stakeholders: Engage with stakeholders within the oil and gas industry to identify gaps in regulation and strengthen surveillance and monitoring structures to detect violations of best practice standards.
- Examine Refinery Status: Understand the status and timelines for the startup of government-funded oil refineries and examine the state of the 22 depots built by the defunct NNPC.
The committee has expressed its determination to conduct a thorough and unbiased investigation, sacrificing a portion of their recess period to ensure the assignment is completed in the national and public interest.
Senator Bamidele emphasized the importance of understanding why local refineries are not operational despite substantial funds invested in their maintenance and operations. He highlighted the committee’s commitment to visiting any necessary facilities, including state-owned refineries, to ascertain their status and address the persistent problems facing the industry.
The committee will also review payments made to transporters over the past ten years and scrutinize the role of various regulatory bodies, including the Nigeria Customs Service, Nigerian Maritime Administration and Safety Agency, Standards Organization of Nigeria, and Nigerian Ports Authority, in the quality assurance process.
This probe marks a significant step by the Senate to address the challenges and issues plaguing Nigeria’s petroleum sector, aiming to ensure accountability and improve the quality of petroleum products in the country.