The Senate disclosed on Thursday that it would wade into the face-off between regulators in the petroleum sector and Alhaji Aliko Dangote, with a view to facilitating the take-off of the Dangote refinery.
It also launched a marathon investigation into cases of sabotage in the petroleum industry in the last 10 years.
Public hearings on the issues, according to the ad-hoc committee, will commence on September 10, 2024.
The ad-hoc Committee set up to investigate alleged sabotage in the petroleum sector, at a press briefing in Abuja, said its terms of reference included extending invitations to all key stakeholders, including regulators, for questioning on issues that led to the poor state of the petroleum sector in the country.
Senate majority leader and chairman of the ad-hoc Committee, Senator Opeyemi Bamidele, said the crisis involving Dangote Group is within the responsibilities given to the Committee, adding that all parties to the crisis will soon be invited to a crucial meeting.
On the investigation of the alleged sabotage in the petroleum sector, Bamidele revealed that the Committee’s terms of reference are, among others: to examine the pre-shipment and pre-discharge standard test parameters adopted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMPDRA) with a view to uncovering loopholes, if any, being exploited to get toxic cargoes into the country.
The committee is also to determine the level of compliance of the Nigerian National Petroleum Company Limited’s (NNPCL) Direct Sale and Direct Purchase (DSP) arrangements in line with the provisions of the Petroleum Industry Act, including the extent of transparency and accountability in the oil sector.
Also, the ad-hoc Committee is to beam legislative searchlights on the activities of NMDPRA, including payments made to transporters in the last 10 years.
It will equally inquire from the NNPCL the state/status of the 22 depots built by the defunct NNPC to eliminate road distribution of petroleum products.
Other terms of reference of the committee include engagement with stakeholders within the oil and gas industry with a view to identifying possible gaps in regulating and strengthening the surveillance and monitoring structures in place to enable Nigeria to detect violations of best practice standards in the importation of products before they enter the domestic supply chains.
It is also expected to engage with the NNPCL with a view to understanding the extent of its determination and timelines for the start-up of government-funded oil refineries.
The Committee will also investigate how institutions across the importation and distribution chain failed to conduct quality sampling, shipped in products without auditing, and performed port validations by the Nigeria Customs Service (NCS), NMDPRA, Nigerian Maritime Administration and Safety Agency (NIMASA), Standards Organization of Nigeria (SON); and Nigerian Ports Authority (NPA).
Bamidele said the Ad-Hoc Committee has identified some critical stakeholders to interact with in the course of discharging this noble assignment. They include the Minister of State for Petroleum (Oil); Ministers of Finance; Trade and Investment; as well as the NNPCL.
The Central Bank of Nigeria (CBN), National Engineering and Technical Company Limited (NETCO) and Contractors; NMDPRA; Nigerian Upstream Petroleum Regulatory Commission (NUPRC); and SON are also expected to testify before the committee.
Others are the Dangote Group, NIMASA, NCS, Nigerian Navy, and OBAT Oil.
The list has Matrix Energy Depot, Independent Petroleum Marketers Association of Nigeria (IPMAN), International Oil Companies (IOCs), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Oil Marketers Association of Nigeria (MOMAN), NPA, modular refineries, and Capital Oil.
The committee disclosed that the Ad-Hoc Committee will visit facilities of some identified stakeholders, especially the state-owned refineries, to ascertain their status, considering the huge funds already invested in their various Turn Around Maintenances year in, year out without any meaningful result.
Bamidele said, “The Committee is particularly interested in understanding why local refineries are not working despite the substantial amounts of money spent annually on their maintenance and operations. We will closely examine what the Nigerian National Petroleum Corporation Limited (NNPCL) has been doing to address this persistent problem.
“Additionally, the Committee will meet with stakeholders in their various zones to gather localised insights and feedback. To ensure broad participation and transparency, the Committee will create a platform for the general public and stakeholders to submit memoranda before the public hearings.”
“Our investigation seeks to identify and hold accountable parties involved in the importation and distribution of the adulterated Petroleum Products (PMS and AGO). This includes suppliers, importers, regulatory bodies, and any other entities that may have contributed to this serious lapse in quality control,” he said.
