The House of Representatives has set up an ad-hoc committee to investigate the alleged failure to supply crude oil to Dangote Refinery and the inability of NNPC Ltd to subscribe for the 20% shares in the refinery.
Speaker Abbas Tajuddeen constituted the committee headed by Rep. Nnolim Nnaji after adopting a motion of urgent public importance moved by the House Minority Leader, Rep. Kingsley Chinda, at the plenary on Thursday.
The committee is to report back to the house within four (4) weeks for further legislative action.
Presenting the motion, Rep. Chinda said the management of Dangote Refinery recently accused International Oil Companies (IOCs) operating in the country of conspiracy, in an attempt to frustrate the smooth operations of the refinery.
He said the IOCs have allegedly conspired against Dangote Refinery to deliberately frustrate it to buy local crude oil by manipulating and jerking up the premium price above the market price forcing it to reduce output.
He added that the Dangote Refinery was also forced to import crude oil at a very exorbitant cost from other countries, and produce locally at increased product price.
Rep. Chinda added, “According to the management of Dangote Refinery, whilst the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) was trying its best to allocate crude to Dangote Refinery, the IOCs were deliberately frustrating Dangote Refinery’s effort to buy the local crude.
“The management of Dangote Refinery alleged that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was still granting import licences, indiscriminately, to marketers to import sub-standard refined petroleum products into the country”.
The lawmaker further expressed concern that while the IOCs are keen on exporting raw materials to their home countries and creating wealth and employment for their countries and adding to their GDP, Nigeria continues to be a dumping ground for refined products, making the country dependent on imported petroleum products.
He lamented that the IOCs’ plan is capable of making Nigeria face a higher rate of unemployment and poverty.
He therefore said there is an urgent need for the federal government, relevant MDAs, including the NUPRC and the MDPRA, key stakeholders and well-meaning Nigerians to support Dangote Refinery to succeed.
He said, “Dangote Refinery, with a capacity of 650,000 barrels per day (bpd) is said to be Africa’s largest refinery, and the world’s 7th largest by capacity, and its construction was meant to alleviate the petroleum products needs and accompanying pains faced by Nigerians.
“Whereas Nigeria is a major oil producing and exporting country, she has for several years continued to import refined petroleum products from other countries, to the detriment of the economic well-being of the country.”
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