The Senate has questioned the $1.5 billion allocated in 2021 for turnaround maintenance at the Port Harcourt Refining and Petrochemical Company, with little or no results.
The Senate also committed to investigating claims of crude oil sabotage to domestic refineries, inviting executives from the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, and Dangote Petroleum Refinery, among others.
It expressed worry amid widespread charges of sabotage in the petroleum industry by prominent participants in the sector.
The upper chamber expressed concern that it was unfair to treat government or public firms as orphans while private businesses thrived.
Senator Opeyemi Bamidele, Leader of the Senate and Chairman of the Senate Ad-hoc Committee to Investigate Alleged Economic Sabotage in the Nigerian Petroleum Industry, asked the questions during a session with industry stakeholders on Wednesday at the National Assembly Complex in Abuja.
The session was attended by Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy; Melee Kyari, Group Managing Director of Nigerian National Petroleum Corporation Limited; Mr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission; and Mr. Farouk Ahmed, Chief Executive Office of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The Federal Executive Council authorised the Ministry of Petroleum Resources’ plan to renovate and turn around the Port Harcourt refinery with $1.5 billion under previous President Muhammadu Buhari’s administration.
Despite a large investment, the government-owned refinery has yet to work effectively, forcing the country to rely almost exclusively on imported refined petroleum products.
At Wednesday’s stakeholder meeting, Bamidele highlighted significant worries about the dysfunctionality of the government-owned refineries, despite billions of dollars poured in turn-around maintenance.
Bamidele observed that the federation “is undergoing a truly challenging period,” pointing out that the distribution and supply of refined petroleum products “has been irregular and problematic in the recent history of our fatherland.”
“The long queues at filling stations are obviously a testament to this challenge. A situation whereby we now depend almost entirely on the importation of these products. Even when we daily supply the global oil market with no fewer than two percent of its crude oil requirements, it is, to say the least, highly worrisome.
“We also have at hand a grievous issue of national concern that directly borders on the importation of hazardous petroleum products and dumping of substandard diesel into the country.”
Bamidele observed that the Federal Government, under different administrations since 1999, “has invested billions of dollars to maintain and turn around the state-owned refineries in Kaduna, Port Harcourt, and Warri. But the refineries are not functioning.”
He stressed that “in 2021, specifically, the Federal Executive Council approved $1.5bn for the turn-around maintenance of the Port Harcourt refinery. Yet, this investment has not yielded significant returns.
“For us, in the Senate, we believe, it is unfair and unpatriotic to treat government businesses or public corporations as an orphan while private businesses are flourishing and thriving.”
To permanently nip these difficulties in the bud, the head of the ad hoc committee said that the Senate and the House of Representatives will begin a joint investigation into various charges of economic sabotage in the petroleum business.
Bamidele stated that there would be no tolerance for grandstanding at the investigative hearing and that the committee will carry out its job honestly and impartially.
While emphasising that nobody will be untouchable, Bamidele said the task of ridding the petroleum industry of malfeasance “is urgent and must be carried out in the spirit of nationalism and patriotism. We are ready to carry it out with all sense of honour and responsibility.
“We are also taking it seriously to address fundamental issues that pose grave threats to our economic prosperity, fiscal stability, and public health as a federation. In line with our mandate, we will unravel factors and forces aiding sabotage in our petroleum industry.
“From our findings, we will craft a legislative framework that will entrench global best practices in the industry, open it up for more investments, especially in the midstream and downstream sectors, and end vicious regimes of subterfuge in the petroleum industry.
“We are utterly committed to this mandate. We shall carry it out without fear or favour. We shall be equitable, fair, and just to all parties to promote and protect the strategic national interests of our fatherland,” Bamidele said.
He also promised that the National Assembly “is ready to carry out the investigative hearing with all sense of honour and responsibility,” citing the impeccable professional backgrounds of members of the committee.
“We are utterly committed to this mandate. We shall carry it out without fear or favour. We shall be equitable, fair, and just to all parties to promote and protect the strategic national interests of our fatherland,” Bamidele said.
He, therefore, promised that the National Assembly “is ready to carry out the investigative hearing with all sense of honour and responsibility,” citing the impeccable professional backgrounds of members of the committee.
“As requested by the Minister of State for Petroleum, the planned public hearing on alleged sabotage in the sector should be televised live for Nigerians to know the truth of situations on the ground.”
In the same vein, the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, said a lot of misinformation has been churned out to the public on roles being played by his ministry and other agencies in making it inclusive for interested investors.
The planned public hearing by the committee, according to him, would give Nigerians the opportunity to know the truth in the sector.
Lokpobiri said, “Please do us a favour by televising the planned investigative hearing on the alleged economic sabotage in the petroleum industry live.”
Similarly, Farouk Ahmed, Chief Executive Officer of NMDPRA, stated in his brief remarks that the forthcoming public hearing should be televised live so that Nigerians can identify those involved in the alleged economic sabotage in the sector.
Similarly, Farouk Ahmed, Chief Executive Officer of NMDPRA, stated in his brief remarks that the forthcoming public hearing should be televised live so that Nigerians can identify those involved in the alleged economic sabotage in the sector.
In his presentation, Aliyu Sulaiman, Group Chief Strategy Officer of the Dangote refinery, revealed that NNPC provided 60% of the five million barrels of crude oil they received recently, 20% was imported, and 20% was purchased.
He praised NNPC for providing such a large supply to Dangote but described the refinery as a baby that needs the assistance of all essential stakeholders to thrive and not perish.
However, during his presentation, the National Chairman of the Depots and Petroleum Marketers Association of Nigeria, Abdulkabir Aliyu, made a covert assault on Dangote, claiming that Dangote gained N133 billion in profit from sugar sales in Nigeria in the last six months.
He claimed that Dangote was able to accomplish such a feat because he was granted monopoly over the Nigerian sugar industry.
He stated that the petroleum sector should not be monopolised by any individual or company, stating that “monopoly kills business.”
Similarly, in his presentation, the National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, strongly warned the committee against petroleum monopolies.
He said, “The current value chain in the downstream should be sustained to allow other investors to participate. NNPC is doing its best but should please improve on the supply of products to retail outlets across the country to end the incessant queues at filling stations.”
