Reps Invite Dangote, NMDPRA Over Alleged Substandard Petroleum Products

The President of the Dangote Group, Aliko Dangote, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have been summoned by the House of Representatives joint Committee on Midstream and Downstream following allegations that a substandard petroleum product is being produced at the former’s refinery.

The lawmakers are said to have commenced an investigation into the allegation, which has attracted mixed reactions from different quarters.

The House of Representatives is also probing the lack of crude oil supply to local refineries, and other related issues.

The committee has assured that a thorough investigation will be carried out by involving all relevant stakeholders to address the root cause of these pressing concerns.

During the opening of the investigation, the Chairman of the Rep Committee, Ikenga Imo Ugochinyere, emphasized the importance of this inquiry, highlighting that the House had previously passed a motion on the urgent need for a legislative forensic investigation into the challenges faced by the downstream and midstream petroleum sectors in Nigeria.

This motion aimed to identify sustainable solutions to the existing problems.

Following the adoption of the motion, the House had tasked the Committees on Petroleum Resources Midstream and Downstream with conducting a comprehensive legislative forensic investigation into various issues such as the re-emergence of fuel queues, allegations of inflated petrol prices, lack of fuel reserves for local refineries, disruptions in fuel distribution, unfair subsidization practices, and irregularities in the Pro Forma Invoice System.

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The committee has officially launched a detailed forensic legislative investigation into critical issues that pose a threat to the stability and credibility of the petroleum industry.

This proactive approach demonstrates the committee’s commitment to addressing the challenges faced by the downstream and midstream sectors in Nigeria.

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 legislator further mentioned that the committee had been tasked with looking into the “uncontrolled granting of licenses and importation of refined petroleum products, reported return of PMS price intervention, claims of product scarcity for marketers from NNPC Retail, continuous postponement of deadlines for refinery repairs, and illicit activities at petrol depots.”

Ugochinyere added that the committee would also carry out a thorough legislative investigation into the involvement of intermediaries in crude oil trading, unregulated issuance of licenses, alleged lack of access to internationally recognized laboratories for testing adulterated products, inflow of contaminated goods into the nation, accusations of failure to deposit profits from crude oil sales in local banks, misuse of the PFI system, importation of goods already manufactured in Nigeria, and utilization of international trading firms to resell fuel supplies to local refineries at inflated 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 Companies, Petroleum Products Refining Companies, IPMAN, PETROAN, independent oil producers, international oil companies (IOCs), importers, marketers, depot owners and Other stakeholders too numerous to mention,” he noted.